Business, 27.10.2020 17:20 july00

The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is:

Answers: 3

Show answers

Answers

Answer from: glydelxc2780

Hi, the question you posted is incomplete, however i have searched for the full question and it reads as follows :

Compton Company expects the following total sales:

MonthSales

March$30,000

April$20,000

May $30,000

June$25,000

The company expects 60% of Its sales to be credit sales and 40% for cash.

Credit sales are collected as follows:

30% in the month of sale, 68% in the month following the sale with the remainder being uncollectible and written off.

Required:

The budgeted Accounts Receivable balance on May 31 is:

$13,200

Explanation:

Step 1 : Separate Cash and Credit Sales in the Sales Budget

Sales Budget for the Months ended, March, April and May

March April May June

Sales $30,000 $20,000 $30,000 $25,000

Cash Sales ($12,000) ($8,000) ($12,000) ($10,000)

Credit Sales $18,000 $12,000 $18,000 $15,000

Step 2 : Prepare the Trade Receivable Budget considering credit sales only

Trade Receivable Budget for the Months ended, March, April and May

March April May June

Balance b/d $0 $12,600 $8,760 $13200

Credit Sales $18,000 $12,000 $18,000 $15,000

Collection - 30 % ($5,400) ($3,600) ($5,400) ($4,500)

Collection - 68 % $0 ($12,240) ($8,160) ($12,240)

Balance c/f $12,600 $8,760 $13,200 $11,460

Note :

The Trade Receivable Budget forecasts the amounts that will be owed to a business by credit customers

Answer from: Quest

what

explanation:

Answer from: Quest

$11,000 is the answer you are looking for

Another question on Business

Business, 22.06.2019 07:40

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000

Answers: 1

Answer

Business, 22.06.2019 10:40

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Answers: 1

Answer

Business, 22.06.2019 13:00

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.

Answers: 1

Answer

Business, 22.06.2019 22:20

Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.

Answers: 1

Answer

You know the right answer?

The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected...

Questions