Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.

WELLS COMPANY
Schedule of Cash Receipts from Sales
November
Sales
Cash receipts from:
Collection of October sales
Collection of September sales
Total cash receints
$ 87,000
C
Transcribed Image Text:WELLS COMPANY Schedule of Cash Receipts from Sales November Sales Cash receipts from: Collection of October sales Collection of September sales Total cash receints $ 87,000 C
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