Alderman Corporation has found that 70% of its sales inany given month are credit sales, while the remainder arecash sales. Of the credit sales, Alderman Corporation hasexperienced the following collection pattern20% received in the month of the sale40% received in the month after the sale22% received two months after the sale18% of the credit sales are never receivedCash salesCollections on credit salos20% Month of sale40% Month after22% Two months afterEXCENovember sales for last year were $110,000,while December sales were $115,000Projected sales for the next three months areas follows:January sales..February sales.March sales.$ 160,000120,000$ 165,000RequirementPrepare a cash collections budget for thefirst quarter, with a column for each month andfor the quarter (Round your answers to theAlderman CorporationCash Collections BudgetFor the Months of January through MarchJanuaryIn(2)(2)

A cash collection budget is a budget which shows the total cash collection in a given period. The…

Answered: Alderman Corporation has found that 70%…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

See similar textbooks

Similar questions

omework (required) Anderson Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 18% Two months after Total cash collections Anderson Corporation Cash Collections Budget For the Months of January through March January February $ $ 33,000 Part 2 of 4 33,000 50,000 12,960 128,960 Points: 0.2 of 2 January sales.. February sales March sales. November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: Save $ 165,000 $ 130,000 $ 200,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month…
November sales for last year were $100,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales... February sales. March sales... $ 165,000 $ 125,000 . $ 190,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)
Monette Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Monette Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 9% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 16% Two months after Total cash collections Monette Corporation Cash Collections Budget For the Months of January through March January C November sales for last year were $100,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales. February sales March sales... $ 160,000 130,000 190,000 .$ Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)
Ebony Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, Ebony Company has the following accounts receivable balances: From April sales P21,000 From May sales 48,000 Select the correct response: P140,000 P70,000 P72,414 P150,000
The company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, the company has the following accounts receivable balances From April sales P21.00 From May sales P48.000 The company's expected sales for June are P150,000. How much cash will the company to collect in June?
Samson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 25% received two months after the sale 15% of the credit sales are never received Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections Samson Corporation Cash Collections Budget For the Months of January through March January I November sales for last year were $85,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales... February sales ... March sales. . . $ 145,000 $ 115,000 $ 170,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)
Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale35 percent of credit sales in the first subsequent month20 percent of credit sales in the second subsequent month5 percent of credit sales in the third subsequent monthThe forecast for both cash and credit sales is as follows. January $185,000 February 184,000 March 193,000 April 195,000 May 200,000 Required: 1. What is the forecasted cash inflow for Ragman Company for May?$fill in the blank 1 2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April. Because of this policy change, what will happen to the total expected cash inflow related to sales made in April?…
Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale35 percent of credit sales in the first subsequent month20 percent of credit sales in the second subsequent month5 percent of credit sales in the third subsequent monthThe forecast for both cash and credit sales is as follows. January $185,000 February 185,000 March 193,000 April 196,000 May 210,000 Required: 1. What is the forecasted cash inflow for Ragman Company for May? 2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April. Because of this policy change, what will happen to the total expected cash inflow related to sales made in April? (CMA adapted) Cash will…
Historically, Ragman Company has had no significant bad debt experience with its customers.Cash sales have accounted for 20 percent of total sales, and payments for credit sales have beenreceived as follows:40 percent of credit sales in the month of the sale35 percent of credit sales in the first subsequent month20 percent of credit sales in the second subsequent month5 percent of credit sales in the third subsequent monthThe forecast for both cash and credit sales is as follows.January $185,000February 182,000March 192,000April 196,000May 210,000 Required:1. What is the forecasted cash inflow for Ragman Company for May?2. Due to deteriorating economic conditions, Ragman Company has now decided that its cashforecast should include a bad debt adjustment of 2 percent of credit sales, beginning withsales for the month of April. Because of this policy change, what will happen to the totalexpected cash inflow related to sales made in April? (CMA adapted)
Bennett Inc. found that about 35% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000 Required: 1. Calculate credit sales for May.$ Calculate credit sales for June.$ Calculate credit sales for July.$ Calculate credit sales for August.$ Feedback 2. Prepare a schedule of cash receipts for July and August. Round your answers to the nearest whole dollar, if necessary. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Bennett Inc.Schedule of Cash ReceiptsFor July and August July…
Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales $ 99,000 $ 128,000 $ 81,000 Credit sales 291,000 453,000 237,000 Total sales $ 390,000 $ 581,000 $ 318,000 Management estimates that 3% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 50% of the selling prices.Budgeted cash payments in December for November inventory purchases by Collection Corporation are: Multiple Choice $42,075. $53,325. $78,000. $156,000. $213,300. Please don't provide answer…
Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales $ 97,000 $ 126,000 $ 79,000 Credit sales 289,000 451,000 235,000 Total sales $ 386,000 $ 577,000 $ 314,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 70% of the sales projected for the month. All purchases of inventory are on open account; 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 50% of the selling prices. Budgeted cash payments in November for November inventory purchases by Collection Corporation are:

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS