FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Wells Company reports the following sales
November, $80,000. All sales are on account. Collections of credit sales are received as follows: 25% in
the month of sale, 60% in the first month after sale, and 10% in the second month after sale. 5% of all
credit sales are written off as uncollectible. Prepare a schedule of cash receipts for November.
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- A company has expected sales for January through April of $9,800, 59, 500, $13, 800, and $9,500, respectively. Assume each month has 30 days and the accounts receivable period is 36 days. How much does the company expect to collect in the month of May?arrow_forwardBallentine Company expects sales for June, July, and August of $65,000, $71,000, and $61,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following sale, 40% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales? Multiple Choice $39,030. $63,430. $81,600. $89,450. $118,200.arrow_forwardPage Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 20% in the month following sale, and 17% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month Total sales 1 2 $70,000 $90,000 $60,000 $40,000 Total cash receipts in Month 4 will be:arrow_forward
- Vikrambhaiarrow_forwardJasper Company has 65% of its sales on credit and 35% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $531,000 for April, $541,000 for May, and $566,000 for June. Total sales for March are $301,600. Prepare a schedule of cash receipts from sales for April, May, and June. Sales Cash receipts from: Total cash receipts JASPER COMPANY Schedule of Cash Receipts from Sales April May 531,000 541,000 June 566,000arrow_forwardHalifax Shoes has 39% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $61,125 in June, $88,627 in July, and $70,376 in August? Round to the nearest penny, two decimal places.arrow_forward
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