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In: Accounting

In the coming year, Oriole, Inc. will be introducing its first product, a wrist brace that...

In the coming year, Oriole, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $20 to retailers throughout the country. All sales will be made on account. An expected 75% of sales will be collected within the quarter of the sale, and another 20 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted sales units 25,200 41,000 52,600 86,000


Prepare Oriole, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Sales Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Budgeted units sold
Budgeted sales price $ $ $ $ $
Budgeted sales revenue $ $ $ $ $
Cash Receipts Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts
1st quarter sales $ $ $ $ $
2nd quarter sales
3rd quarter sales
4th quarter sales
Totals $ $ $ $ $


Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year.

Net Accounts Receivable $

Solutions

Expert Solution


Prepare Oriole, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Sales Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Budgeted units sold 25200 41000 52600 86000 204800
Budgeted sales price $20 $20 $20 $20 $20
Budgeted sales revenue $504000 $820000 $1052000 $1720000 $4096000
Cash Receipts Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts
1st quarter sales $378000 $100800 $ $ $25200
2nd quarter sales 615000 164000 41000
3rd quarter sales 789000 210400 52600
4th quarter sales 1290000 86000
Totals $378000 $715800 $953000 $1500400 $204800


Determine the Net Accounts Receivable at the end of the year. Assume that no accounts have been written off during the year.

Net Accounts Receivable 1720000*20% $344000

ekkarill92 answered 2 years ago
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