Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August $55,000 64,000 46,000 61,000 72,000 76,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales In month of sale One month after sale Two months after sale Total cash receipts January February $ Simpson Glove Company Cash Receipts Schedule April March 0 $ 0 S May 0 $ June 0 $ July 0$ August
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August $55,000 64,000 46,000 61,000 72,000 76,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. Credit sales In month of sale One month after sale Two months after sale Total cash receipts January February $ Simpson Glove Company Cash Receipts Schedule April March 0 $ 0 S May 0 $ June 0 $ July 0$ August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
April
MAY
June
July
August
$55,000
64,000
46,000
61,000
72,000
76,000
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent
are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are
collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Credit sales
In month of sale
One month after sale
Two months after sale
Total cash receipts
January
February
$
Simpson Glove Company
Cash Receipts Schedule
April
March
Tellinum ungl
Prev
May
5 of 10
June
0 $
Next>
******
July
0 $
August
0
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