FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 20, Problem 21QS
Cash receipts, with uncollectible accounts P2
Well Company reports the following sales
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Mercurius forecasts the following sales figures for the next four months.
June
July
August
September
420,000
350,000
380,000
440,000
Cash sales average 15% of total sales. Credit sales are collected 60% in the month of sale and 40% in the month following sale. What is Mercurius' estimated accounts receivable balance on 30 September?(Answer without comma separators, e.g., 1000 instead of 1,000)
Jasper Company has sales on account and for cash. Speclfically, 63% of Its sales are on account and 37% are for cash. Credit sales are
collected In full in the month following the sale. The compay forecasts sales of $526.000 for April, $536.,000 for May, and $561,000
for June. The beginning balance of Accounts Recetvable Is S291.600 on Aprll 1.
Prepare a schedule of budgeted cash recelpts for Aprl, May, and June.
J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year:
Fourth Quarter
September (actual)
$ 73,000
October
November
December
$ 63,000
58,000
83,000
Experience has shown that 35 percent of sales are collected in the month of sale, 60 percent are collected in the following month, and
5 percent are never collected.
Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December).
Credit sales
Collections:
In month of sales
One month after sales
Total cash receipts
J. Lo's Clothiers
September
October
November
December
$
0 $
0 $
0
Chapter 20 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 20 - Budget motivation C1 For each of the following...Ch. 20 - Budgeting benefits C1 For each of the following...Ch. 20 - Prob. 9QSCh. 20 - Prob. 10QSCh. 20 - Prob. 11QSCh. 20 - Prob. 19QSCh. 20 - Cash receipts, with uncollectible accounts P2 The...Ch. 20 - Cash receipts, with uncollectible accounts P2 Well...Ch. 20 - Prob. 22QSCh. 20 - Budgeted loan activity P2 Santos Co. is preparing...
Ch. 20 - Prob. 25QSCh. 20 - Prob. 26QSCh. 20 - Prob. 27QSCh. 20 - Prob. 28QSCh. 20 - Prob. 29QSCh. 20 - Prob. 30QSCh. 20 - Prob. 3ECh. 20 - Prob. 10ECh. 20 - Prob. 12ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Prob. 32ECh. 20 - Prob. 1PSACh. 20 - Prob. 2PSACh. 20 - Prob. 3PSACh. 20 - Prob. 1PSBCh. 20 - Prob. 2PSBCh. 20 - Prob. 3PSBCh. 20 - Prob. 4PSBCh. 20 - Prob. 5PSBCh. 20 - Identify at least three benefits of budgeting in...Ch. 20 - Prob. 2DQCh. 20 - What is the benefit of continuous budgeting?Ch. 20 - Identify three usual time horizons for short-term...Ch. 20 - Why should each department participate in...Ch. 20 - How does budgeting help management coordinate and...Ch. 20 - Why is the sales budget so important to the...Ch. 20 - What is the selling expense budget? What is the...Ch. 20 - Prob. 9DQCh. 20 - GOOGLE Google prepares a cash budget. What is a...Ch. 20 - Prob. 11DQCh. 20 - ETHICS CHALLENGE C1 BTN 20-3 Both the budget...Ch. 20 - Prob. 2BTNCh. 20 - Prob. 3BTN
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- Accounts Receivable Balance Hart Inc. began the year with $315,700 of accounts receivable. During the year, Hart sold a considerable amount of merchandise on credit and collected $2,427,000 of its credit sales. At the end of the year, the accounts receivable balance is $16,800 lower than the beginning balance. Required: Calculate the amount of credit sales during the period.arrow_forwardNonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?arrow_forwardHistorically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month The forecast for both cash and credit sales is as follows. Required: 1. What is the forecasted cash inflow for Ragman Company for May? 2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April. Because of this policy change, what will happen to the total expected cash inflow related to sales made in April? (CMA adapted)arrow_forward
- Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.arrow_forward1.A company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in second month after the month of sale. The remaining 1 percent is never collected. At the end May, it has the following accounts receivable balances From April sales P21,000 From May sales 48.000 The expected sales for June are P150,000. What are the total sales for April? 2. A company has a policy of maintaining an inventory of finished goods equal to 30 percent of the following month's sales. For the forthcoming month of March, the budgeted beginning inventory at 30,000 units and the ending inventory at 33,000 units. This suggests thatarrow_forwardJ. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: September (actual) Fourth Quarter $ 73,000 October November December $ 63,000 58,000 83,000 Experience has shown that 35 percent of sales are collected in the month of sale, 60 percent are collected in the following month, and 5 percent are never collected. Prepare a schedule of cash receipts for J. Lo's Clothiers covering the fourth quarter (October through December). J. Lo's Clothiers September October November December Credit sales In month of sales One month after sales Total cash receipts %$4 0 $ %24arrow_forward
- Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.arrow_forwardUse the following information to answer questions 1-3: January Cash Sales $40,000 Credit Sales $120,000 February March April $35,000 $110,000 $25,000 $90,000 $30,000 $100,000 20% of the credit sales are collected in the month of sale, 70% in the month after sale, and 10% in the second month after sale. What is the balance of accounts receivable on March 31? Multiple Choice $11,000 $12,000 $72,000 $83,000arrow_forwardFernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:4. Anticipated cash balance on August 31.arrow_forward
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