Problem 1: ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows: The sales during the 4" quarter of 2021 is 30,000 units and the selling price per unit is PS00 per unit. Units to be sold is forecasted to increase by 5% per quarter while the sales price for 2022 will be 2% higher than the previous PS00 per unit. • Of the sales per quarter, 55% are cash sales while the remaining credit sales. The credit sales are expected to be settled as follows: 5/9 will be collected during month of sales, 3/9 will be collected the month after month of sales, and the remaining will be written off two months after month of sale. • The forecasted receivable balance on Jan. 1, 2022 is P3,500,000, 90% of which is expected to be collected during the first quarter while the remaining will be written off during the second quarter of 2022. Required 3d Quarter 4* Quarter 1" Quarter 2d Quarter Sales 1. 2. 3. 4. Receivable balance as of the end of 5. 6. 7. 8. Cash collections 9. 10. 11. 12.

Problem 1: ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows: The sales during the 4" quarter of 2021 is 30,000 units and the selling price per unit is PS00 per unit. Units to be sold is forecasted to increase by 5% per quarter while the sales price for 2022 will be 2% higher than the previous PS00 per unit. • Of the sales per quarter, 55% are cash sales while the remaining credit sales. The credit sales are expected to be settled as follows: 5/9 will be collected during month of sales, 3/9 will be collected the month after month of sales, and the remaining will be written off two months after month of sale. • The forecasted receivable balance on Jan. 1, 2022 is P3,500,000, 90% of which is expected to be collected during the first quarter while the remaining will be written off during the second quarter of 2022. Required 3d Quarter 4* Quarter 1" Quarter 2d Quarter Sales 1. 2. 3. 4. Receivable balance as of the end of 5. 6. 7. 8. Cash collections 9. 10. 11. 12.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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