All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale.

Black Horse Transportation's sales budget for the first quarter follows:

January February March $125,000 300,000 290,000

All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts.

The March cash receipts are: Select one:

A. $250,500 B. $172,500 C. $102,500 D. $260,000

Expert Solution

Particulars January February March

Sales $1,25,000.00 $3,00,000.00 $2,90,000.00

Collection are as below

First: 50% collected in the month of sale $62,500.00 $1,50,000.00 $1,45,000.00

Second: 30% collected in the next month $37,500.00 $90,000.00

Third: 20 % is collected in secon month $25,000.00

Total Collection of the march $260,000.

Answer = Option D = $ 260,000

S Mahalaxmi answered 2 years ago

Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale.

Harrti Corporation has budgeted for the following sales: July August September October November December $455,000 $557,000 $663,000 $823,000 $773,000 $733,000 Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?$733,000 $659,700 $891,600 $231,900

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the...

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be: Multiple Choice $175,000 $275,000 $70,000 $30,000

3) 60 % percent of Putnam Corporation's sales are collected in the month of sale, 30%...

3) 60 % percent of Putnam Corporation's sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be: A) $175,000 B) $150,000 C) $285,000 D) $255,000 4) Half of Curry Corporation's sales are on account (credit)- the other half is cash on...

All of Pocast Corporation's sales are on account. Sixty percent of the credit sales are collected...

All of Pocast Corporation's sales are on account. Sixty percent of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $ 700,000 $ 500,000 $ 400,000 $ 600,000 Cash receipts in April are expected to be: $530,000 $410,000 $460,000 $360,000

1. Plantsville makes all sales on account, subject to the following collection pattern: 30% are collected...

1. Plantsville makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for October, November, and December were $79,000, $69,000, and $59,000, respectively, what was the budgeted receivables balance on December 31? Multiple Choice $67,000. $41,300. $48,200. $49,300. None of the answers is correct. 2. Glastonbury Inc. began operations in...

Budgeting Vern's makes all sales on account, subject to the following collection pattern: 20% are collected...

Budgeting Vern's makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. Required: If sales for October, November and December were $171,662, $198,213, and $145,268, respectively, what was the budgeted receivables balance on December 31?

Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15%...

Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15% in the second month following sale. Budgeted sales: July $28,000, August $24,000, September $30,000 Determine the September ending receivables balance: 1.b. The budgeted sales volume is 8,700 units. Inventories planned for the period : Beginning Ending Direct material 8,000 8,500 Finished goods 2,400 2,800 Each unit of finished goods requires four units of direct material in production. Work in process inventory is zero at the beginning and end of the period....

Eastern Corporation collects 45% in the second month following sale, 40% in the month following sale...

Eastern Corporation collects 45% in the second month following sale, 40% in the month following sale and 15% of a month's sales in the month of sale. Budgeted sales for the upcoming four months are: April budgeted sales $ 60,000. May budgeted sales. $180,000 June budgeted sales $250,000. July budgeted sales $220,000. The amount of cash that will be collected in July is budgeted to be.

#10 Sharon Corporation collects 10% in the second month following sale, 55% in the month following...

#10 Sharon Corporation collects 10% in the second month following sale, 55% in the month following sale and 30% of a month's sales in the month of sale. The company has found that 55% of their sales are uncollectible. Budgeted sales for the upcoming four months are: August budgeted sales $$340,000 September budgeted sales $ $310,000 October budgeted sales $ $380,000 November budgeted sales $ $230,000 The amount of cash that will be collected in November is budgeted to be

The credit term 2/20, net 50 means that the buyers can take up 30 (50-20) days...

The credit term 2/20, net 50 means that the buyers can take up 30 (50-20) days to pay. But the firm allows buyers to take 2% discount if they pay in 20 days. Otherwise, they must pay the full amount within 30 days. True False

Question