The PDQ Company makes collections on credit sales according to the following schedule: 10% in month of sale 85% in month following sale 5% uncollectible The following sales have been budgeted: Sales $100,000 $120,000 $110,000 Month April............ May. June Cash collections in May would be: Numeric Response

The PDQ Company makes collections on credit sales according to the following schedule: 10% in month of sale 85% in month following sale 5% uncollectible The following sales have been budgeted: Sales $100,000 $120,000 $110,000 Month April............ May. June Cash collections in May would be: Numeric Response

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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CASH BUDGET; REQUIRED: Prepare a schedule showing cash collections during October. Prepare cash disbursements (payments) during October. Assuming that company had $150,000 cash balance as of October 1, calculate cash balance as of October 31. Company’s accounts receivable collection experience is as follows: Cash collected from current month’s sales; terms 1/10 n/30: 20% Cash collected from prior month’s sales (no discount) 65% Cash collected from sales two months ago: 13% Uncollectible receivables 2% Company’s estimated credit sales (company has no cash sales): July $480,000 August 420,000 September 370,000 October 350,000 November 400,000 Company’s…
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Liza's budgets sales of $40,000 for May and $62,000 for June. Assume 70% of Liza's sales are for cash. The remaining 30% are credit sales; credit customers pay the entire amount owed in the month following the sale. Prepare the schedule of cash receipts from sales for June. LIZA'S Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts $ June 62,000
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