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In: Accounting
The Twisty Tie Dye Co. was formed and began operations in September 2017. The company sells...
The Twisty Tie Dye Co. was formed and began operations in September 2017. The company sells one product; a fabulous, ultra soft plush poncho handmade from French cotton terry. All of the Twisty Tie Dye Co. sales are on account. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data for the company for the first 4 months of operations:
| September | October | November | December | |
| Total Sales | $400,000 | $600,000 | $500,000 | $700,000 |
Cash receipts for the month of October and December are?
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Expert Solution
| September | October | November | December | |
| Total Sales | 400,000 | 600,000 | 500,000 | 700,000 |
| Cash Collection: | ||||
| Collecetd in the month of sale | 240,000 | 360,000 | 300,000 | 420,000 |
| Collecetd in the next month of sale | 100,000 | 150,000 | 125,000 | |
| Collecetd in the second month of sale | 40,000 | 60,000 | ||
| Total cash collection | 240,000 | 460,000 | 490,000 | 605,000 |
ekkarill92 answered 1 year agoRelated Solutions
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DATE
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Sold a high-definition
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DATE
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