**Benton Company Sales Budget Analysis***The Benton Company's sales budget provides the following projected total sales for the first four months of the year:*| Month | Sales ||----------|-----------|| January | $23,000 || February | $32,000 || March | $37,000 || April | $42,000 |The company anticipates that 80% of its sales will be on account (credit sales). The collection pattern for credit sales is as follows:- 25% collected in the month of the sale.- 7% collected in the month following the sale.- Remaining amounts are deemed uncollectible and written off.**Question:**Calculate the total cash receipts during April.**Multiple Choice Options:**- $37,816- $27,605[Note: Assume this question is presented as part of an educational exercise focusing on cash flow forecasting and accounts receivable management.]

A cash receipt is a written acknowledgement of the amount of money received in a cash or cash…

Benton Company's sales budget shows the following expected total sales: Month January February March April Multiple Choice The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 71% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: $27,605. Sales $ 23,000 $32,000 $37,816. $ 37,000 $ 42,000

Benton Company's sales budget shows the following expected total sales: Month January February March April Multiple Choice The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 71% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: $27,605. Sales $ 23,000 $32,000 $37,816. $ 37,000 $ 42,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Subject: acc
2 Papst Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable (based on sales made to customers on open account): $155, 000 $195, 000 $270, 000 Actual credit sales for March Actual credit sales for April Estimated credit sales for May 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% 5% Estimated provision for bad debts (made in the month of sale) The firm writes off all uncollectible accounts at the end of the second month after the month of sale. Required: Determine for Papst Company for the month of May: 1. The estimated cash receipts from accounts receivable collections. 2. The gross amount of accounts receivable at the end of the month (after appropriate write-off of uncollectible accounts). 3. The net amount of accounts receivable at the end of the month. 4.…
Frame Manufacturing Corporation has provided the following sales budget information: July August September $ 65,000 $ 75,000 $ 80,000 Cash sales are normally 40% of total sales; credit sales are expected to be collected in their entirety in the month following the month of sale. The amount of cash expected to be received from customers in September is:
Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year Jan Feb Sales (30% cash) March $750,000 $1,000,000 $400,000 The company collects 60% of credit sales in the same month and the balance in the next month Calculate the collections from the customers for the month of February OA $750,000 OB $540,000 OC. $427,000 OD 1652,000 Corre
Copdog David Inc. is presently preparing their budget for the 1st quarter. The marketing department has projected sales, in units, for the coming 4 months: January 3,000February 2,500March 4,200April 2,400The selling price per unit is $16 each. All sales are on account and, based on historical data, the company has the following accounts receivable payment experience: Percentage paid in the month of sale 40% Percentage paid in the month after sale 55% Percent lost to uncollectible accounts 5% Company policy requires that ending inventories for each month be 20% of next month’s sales. a) Prepare a sales budget for February and March and provide total sales revenue. Feb: March: b) Prepare a schedule showing the cash expected in payments on accounts receivable in February and March. Feb: March: c) Prepare a production budget for February and March and provide the total units to produce. Feb: March:
Julia's Candy Co. reports the following information from its sales account and sales budget: Sales Expected Sales: O $30,000 O $82,500 O $112,500 O $120,000 May June July O $202,500 August September Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. Based on the information from Julia's, the total amount of cash expected to be received from customers in September is: -O+ 14 B % F6 D $105,000 93,000 F7 $90,000 6 110,000 120,000 F8 & F9
Zily Co. predicts sales of $185,000 for June. Zily pays a sales manager a monthly salary of $6.600 and a commission of 8% of that month's sales dollars. Prepere a selling expense budget for the month of June. ZILLY CO. Selling Expense Budget For Month Ended June 30 Budgeled sales
7 Benton Company's sales budget shows the following expected total sales: Month Sales January $17,000 February $21,000 March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 69% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: Multiple Choice O $26,000 $49,000 O O $21,165. $35,200. $33,952. Check $25,725.
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July August September $ 92,140 $ 107,685 $ 135,496 Cash sales are normally 35% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Jasper Company has 70% of its sales on credit and 30% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $525,000 for April, $535,000 for May, and $560,000 for June. Total sales for March are $500,000. 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 COUNT Collections of prior period sales Total cash receipts $ 525,000 367,500 May 535,000 June 560,000
The cash collection pattern of Twice Co. Inc shows that 60% of sales are collected on the month of sale, 30% is collected on the next month and the remaining is collected on the third month from the month of sale. The monthly sales are shown as follow April 1,400,000 Jan Feb March May 1,500,000 1,200,000 1,600,000 1,000,000 Create cash collection budget
Kennedy Enterprises has budgeted sales for the months of September and October at $170,000and $14 are 60% credit and 40% cash. Of the credit sales, 30% are collected in the month of sale and 70% are col What are the October cash collections from customers? $81,200 O $96,600 O $145,400 O $152,600