Wells Company reports the following budgeted sales: September, $52,000; October, $62,000; and November, $73,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.

Wells Company reports the following budgeted sales: September, $52,000; October, $62,000; and November, $73,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

XYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $15. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to: Select one: O a. $279,000 O, b. $42,000 O c. None of the given answers O d. $32,250 O e. $56,000 $12 009, Assume a selling price per unit of $64 and
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $40,660 $7,740 $43.360 $32,920
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $243,000, $308,000, and $429,000, sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected respectively, for September, October, and November. The company expects in the month of the sale and 30% in the month following the sale. The cash collections expected in October are a. $293,375 b. $221,080 Oc. $269,680 Od. $282,680 ?
Zisk Company purchases direct materials on credit. Budgeted purchases are April, $80,000; May, $110,000; and June, $120,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $70,000. Prepare a schedule of cash payments for direct materials for April, May, and June.
Wala Incorporated bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $30,360 per month, which includes depreciation of $3,630. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 3,100 units are planned to be sold in July. Required: Prepare the selling and administrative expense budget for July.
S ABC Company's raw materials purchases for June, July, and August are budgeted at $39,000, $29,000, and $54,000, respectively. Based on past experience, ABC expects that 70% of a month's raw material purchases will be paid in the month of purchase and 30% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments June July August $ 0
Capstone Inc. collects 20% of its sales on account in the month of the sale and 80% in the month following the sale. If sales on account are budgeted to be $117,000 for September and $135,000 for October, what are the budgeted cash receipts from sales on account for October? $_________
Ivanhoe Company, a retailer of camping supplies has budgeted activity for January using the following data: January cash sales January credit sales Collections from December credit sales Selling and administrative costs (paid in month of purchase) Depreciation expense Merchandise Inventory, January 1 Merchandise Inventory, January 31 Cost of goods sold is 30% of Cooper's selling price All purchases are paid in cash Credit sales are collected 60% in the month of sale, 30% in the following month, and 10% is deemed uncollectible What is Ivanhoe's budgeted cash disbursements for January? Total January disbursements $ $59,000 386,000 155,000 59,000 22,000 199,000 211,000
Wells Company reports the following budgeted sales: September, $53,000; October, $72,000; and November, $87,000. All sales are on credit, and 5% of those credit sales are budgeted as uncollectible. Collection of the remaining 95% of credit sales are budgeted as follows: 60% in the first month after sale and 35% in the second month after sale. Prepare a schedule of cash receipts from sales for November.
Thornton, Inc. has budgeted sales for the months of September and October at S304,000.00 and $288,000.00, respectively. Monthly sales are 20% credit and 80% cash. Of the credit sales, 50% are collected in the month of sale, and 50% are collected in the following month. Calculate cash collections for the month of October. O A. $289,600.00 O B. $302.400.00 OC. $259,200.00 O D. $273,600.00
XYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $45. Budgeted unit sales for July. August, September, October and November are 1,400 units, 2.100 units, 3,400 un 2.700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to: Select one: O a. $96,750 O b. None of the given answers O c $154,000 O d. $140,000 O e. $126.000
Music World reports the following budgeted sales: August, $170,000; and September, $200,000. Cash sales are 40% of total sales, and all credit sales are collected in the month following the sale. Prepare a schedule of cash receipts from sales for September. MUSIC WORLD Schedule of Cash Receipts from Sales Sales Cash receipts from: Total cash receipts September $ 200,000