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
icon
Related questions
icon
Concept explainers
Question
Problem 1:
ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows:
• The sales during the 4th quarter of 2021 is 30,000 units and the selling price per unit is P500 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 P500 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:
1' Quarter
2nd Quarter
3rd Quarter
4th Quarter
Sales
1.
2.
3.
4.
Receivable balance as of the end of
5.
6.
7.
8.
Cash collections
9.
10.
11.
12.
Transcribed Image Text:Problem 1: ABC Corporation is preparing its sales and receivable budget for the year 2022. Details are as follows: • The sales during the 4th quarter of 2021 is 30,000 units and the selling price per unit is P500 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 P500 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: 1' Quarter 2nd Quarter 3rd Quarter 4th Quarter Sales 1. 2. 3. 4. Receivable balance as of the end of 5. 6. 7. 8. Cash collections 9. 10. 11. 12.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education