FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Martinez Company has budgeted sales revenue as follows for the next 4 months:
February
March
April
May
March sales
Past experience indicates that 70% of sales each month are on credit. The remainder are cash sales. Collection of credit sales occurs as
follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is
uncollectible.
Credit sales
Prepare a schedule which shows expected cash receipts from sales for the month of May.
April sales
MARTINEZCOMPANY
Expected Cash Receipts from Sales
For the Month Ended May 31
Credit sales
$310,000
May sales
245,000
Credit sales
230,000
Cash sales
330,000
Total cash receipts
OOONO
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