Assume a merchandising company provides the following information from its master budget for the month of May: Sales$ 121,000Cost of goods sold$ 97,000Selling and administrative expenses$ 31,000Accounts receivable, May 1st$ 17,000Accounts receivable, May 31st$ 24,500 If all of the company’s sales are on account, what is the amount of cash collections from customers included in the cash budget for May? Assume a merchandising company provides the following information from its master budget for the month of May:$ 121,000$ 97,000$ 31,000$ 17,000SalesCost of goods soldSelling and administrative expensesAccounts receivable, May 1StAccounts receivable, May 31st$ 24,500If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May?Multiple Choice$121,000$113,500$104,000$111,500

Solution: cash collections from customers = Sales on account + Accounts receivable at beginning -…

ssume a merchandising company provides the following information from its master budget for the month of May: Sales $ 121,000 Cost of goods sold $ 97,000 Selling and administrative expenses $ 31,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 24,500

ssume a merchandising company provides the following information from its master budget for the month of May: Sales $ 121,000 Cost of goods sold $ 97,000 Selling and administrative expenses $ 31,000 Accounts receivable, May 1st $ 17,000 Accounts receivable, May 31st $ 24,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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Sales	$ 121,000
Cost of goods sold	$ 97,000
Selling and administrative expenses	$ 31,000
Accounts receivable, May 1^st	$ 17,000
Accounts receivable, May 31^st	$ 24,500

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