FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Merchandise purchases were $43,000 and $76,000 for September and October, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.
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- Jasper Company has 57% of its sales on credit and 43% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $524,000 for April, $534,000 for May, and $559,000 for June. Total sales for March are $307,500. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Cash sales JASPER COMPANY Schedule of Cash Receipts from Sales April May Collections of prior period sales Total cash receipts 524,000 ***** 534,000 June 559,000arrow_forwardJasper Company has 56% of its sales on credit and 44% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $523,000 for April, $533,000 for May, and $558,000 for June. Total sales for March are $305,700. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Cash sales JASPER COMPANY Schedule of Cash Receipts from Sales April May Collections of prior period sales Total cash receipts S S $ $ $ $ Junearrow_forwardThe table contains the Sales estimates for the next year. Sales are collected as follows:In the month of Sales: 43%In the next month: 23%After 2 months: 14%After 3 months: remainder is collected What is the cash collection for November? Month Sales $ Month Sales $ Jan 28,555 July 36,215 Feb 21,027 Aug 19,907 Mar 19,907 Sep 28,555 Apr 36,215 Oct 19,907 May 28,555 Nov 21,027 June 21,027 Dec 36,215arrow_forward
- A company is preparing its cash buget for the month of May. Below is A/R information: Actual credit sale for March $130,000 Actual credit sale for April $160,000 Estimated credit sales for May $210,000 Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 60% Estimated collections in the second month after the month of sale 10% Estimated provision of bad debts (made in month of sale) 5% ** Firm writes off all UNCOLLECTIBLE account receievables at the end of second month after the month of sale. Required: For the month of May, calculate the following: 1. Estimated cash receipts from account recievable collections. 2. The gross amount of A/R at the end of the month (after appropriate write off of uncollectiable amounts). 3. The net amount of A/R at the end of the month 4. Recalculate the requirement 1 & 2 under the assumption that estimated collections in the month of sale equal 60% and in the first…arrow_forwardSales for February of this year totaled $192,096. If the planned seasonal sales distribution is as follows, figure the dollar sales for the remaining months of the period. Round to the nearest dollar. February 10% March 14% April 16% May 18% June 14% July 12%arrow_forwardNonna's Re-Appliance Store collects 52% of its accounts receivable in the month of sale and 37% in the month after the sale. Given the following sales, how much cash will be collected in February? Round to the nearest penny, two decimal places. Month Sales Nonna's Re-Appliance Store data December $20,688 January $62,044 February $69,259arrow_forward
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