Wells Company reports the following sales forecast: September, $55,000; October, $66,000; and 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.
Wells Company reports the following sales forecast: September, $55,000; October, $66,000; and 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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