Budgeted Cash Collections The Smile Doctor offers terms of 3/10, n/30, with a 10% discount on patient payments made with cash. The Smile Doctor estimates its total billings for the first calendar quarter of the year as follows: January, $125,000; February, $110,000; and March, $130,000. Historically, the Smile Doctor has had the following patient collection patterns: In month of sale: Cash at time of sale On account during the discount period On account after the discount period. In month following sale: On account after the discount period In second month following sale: On account after discount period Average portion uncollectible $ Check Portions of Total Sales 15% 5% 100% What would the Smile Doctor's budgeted total cash collections be for March? x 25% 15% 10% 30%

Budgeted Cash Collections The Smile Doctor offers terms of 3/10, n/30, with a 10% discount on patient payments made with cash. The Smile Doctor estimates its total billings for the first calendar quarter of the year as follows: January, $125,000; February, $110,000; and March, $130,000. Historically, the Smile Doctor has had the following patient collection patterns: In month of sale: Cash at time of sale On account during the discount period On account after the discount period. In month following sale: On account after the discount period In second month following sale: On account after discount period Average portion uncollectible $ Check Portions of Total Sales 15% 5% 100% What would the Smile Doctor's budgeted total cash collections be for March? x 25% 15% 10% 30%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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