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

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: