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In: Accounting
Exercise 10-31 Cash Receipts and Payments [LO 10-4] Information pertaining to Noskey Corporation’s sales revenue follows:...
Exercise 10-31 Cash Receipts and Payments [LO 10-4] Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019 (Budgeted) Cash sales $ 115,000 $ 121,000 $ 74,000 Credit sales 282,000 409,000 208,000 Total sales $ 397,000 $ 530,000 $ 282,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2018 from November 2018 credit sales. 2. Budgeted total cash receipts in January 2019. 3. Budgeted total cash payments in December 2018 for inventory purchases. Next Visit question mapQuestion 1 of 3 Total 1 of 3 Prev
Solutions
Expert Solution
1. Budgeted cash collections in December 2018 from November 2018 credit sales: $107160
| December | |
| November credit sales | 282000 |
| Less: Uncollectible (5% x $282000) | 14100 |
| Collectible credit sales | 267900 |
| Collected in December $ (40% x $267900) | 107160 |
2. Budgeted total cash receipts in January 2019: $347980
| January | |
| Cash sales | 74000 |
| Credit sales for: | |
| December ($409000 x 95% x 40%) | 155420 |
| January ($208000 x 95% x 60%) | 118560 |
| Total cash receipts $ | 347980 |
3. Budgeted total cash payments in December 2018 for inventory purchases: $274005
| November | December | January | |
| Sales | 397000 | 530000 | 282000 |
| Purchase cost @ 60% | 238200 | 318000 | 169200 |
| Inventory purchases: | |||
| 70% of next month's cost of sales | 222600 | 118440 | |
| 30% of current month's cost of sales | 71460 | 95400 | |
| Total purchases $ | 294060 | 213840 | |
| Payment for: | |||
| November purchases ($294060 x 75%) | 220545 | ||
| December purchases ($213840 x 25%) | 53460 | ||
| Total cash payments for inventory purchases $ | 274005 |
ekkarill92 answered 2 years agoRelated Solutions
Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019...
Information pertaining to Noskey Corporation’s sales revenue
follows:
November 2018
(Actual)
December 2018
(Budgeted)
January 2019
(Budgeted)
Cash sales
$
80,000
$
100,000
$
60,000
Credit sales
240,000
360,000
180,000
Total sales
$
320,000
$
460,000
$
240,000
Management estimates 5% of credit sales to be uncollectible. Of
collectible credit sales, 60% is collected in the month of sale and
the remainder in the month following the month of sale. Purchases
of inventory each month include 70% of the next...
Information pertaining to Noskey Corporation’s sales revenue follows: November 2015 (Actual) December 2015 (Budgeted) January 2016...
Information pertaining to Noskey Corporation’s sales revenue
follows:
November 2015
(Actual)
December 2015
(Budgeted)
January
2016
(Budgeted)
Cash sales
$
155,000
$
145,000
$
90,000
Credit sales
330,000
465,000
240,000
Total sales
$
485,000
$
610,000
$
330,000
Management estimates 5% of credit sales
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The sales budget for Perrier Inc. is forecasted as follows:
Month
Sales Revenue
May
$100,000
June
180,000
July
200,000
August
140,000
To prepare a cash budget, the company must determine the
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20 percent in the month following sale.
15 percent in the second month following sale.
5 percent uncollectible.
The company gives a 1...
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Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:
Month
Sales Revenue
May
$100,000
June
180,000
July
200,000
August
140,000
To prepare a cash budget, the company must determine the
budgeted cash collections from sales. Historically, the following
trend has been established regarding cash collection of sales:
60 percent in the month of sale.
20 percent in the month following sale.
15 percent in the second month following sale.
5 percent uncollectible.
The company gives a 1...
nformation pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019...
nformation pertaining to Noskey Corporation’s sales revenue
follows:
November 2018
(Actual)
December 2018
(Budgeted)
January 2019
(Budgeted)
Cash sales
$
180,000
$
160,000
$
100,000
Credit sales
360,000
500,000
260,000
Total sales
$
540,000
$
660,000
$
360,000
Management estimates 5% of credit sales to be uncollectible. Of
collectible credit sales, 60% is collected in the month of sale and
the remainder in the month following the month of sale. Purchases
of inventory each month include 70% of the next...
Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash sales $...
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November
December
January
Cash sales
$
98,000
$
127,000
$
80,000
Credit sales
290,000
452,000
236,000
Total sales
$
388,000
$
579,000
$
316,000
Management estimates that 5% of credit sales are eventually
uncollectible. Of the collectible credit sales, 65% are likely to
be collected in the month of sale and the remainder in the month
following the month of sale. The company desires to begin each
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The budget director for Munoz Cleaning Services prepared the
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Enter the Transactions in the appropriate journal. Journals include Sales, Cash Receipts, Cash Payments, Purchases, and...
Enter the Transactions in the appropriate journal. Journals
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Journal
Trans. 1
Cash register summary
Cash sales merchandise $1,822.41
Sales tax 91.12
Received on account Monique Gonzales 200.00
Total cash 2,113.53
Sales on account Robert Max
Invoice #14892 $326.82
Sales tax 16.34
Total sale 343.16
Enter the cash sales and the received on account into the cash
receipts journal; enter each on its own line. Enter the sale on
account into the...
Question 3 Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash...
Question 3
Information pertaining to Yekstop Corp.'s sales revenue is
presented below:
November
December
January
Cash sales
$
105,000
$
134,000
$
87,000
Credit sales
297,000
459,000
243,000
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$
402,000
$
593,000
$
330,000
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business also maintains subsidiary ledgers for accounts receivable
and accounts payable, in addition to the related control accounts
(ignore GST). The relevant account balances as of December 31,
2019, were as follows.
Account No.
Account Title
Account balance
Debit
Credit
100
Cash at Bank
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120
Accounts Receivable
13,200
140
Inventory
19,000
200
Equipment
250,000
300
Accounts Payable
$11,000
330...
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