Question
In: Accounting
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and...
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and $300,000 in October. The pattern for collection of cash from customers is expected to be 40% in the month of sale (subject to a 2% cash discount), 50% in the month following the month of sale, and 7% in the second month following the month of sale, with 3% uncollectible. How much cash did Smith Company receive from customers on account during October?.
Solutions
Expert Solution
Cash collected in October= $217,600
Working
| Received in current month | $ 117,600.00 |
| Collection of September credit sales (200000 x 50%) | $ 100,000.00 |
| Total collection in October | $ 217,600.00 |
..
| September | October | |
| Sales | $ 200,000.00 | $ 300,000.00 |
| 40% of sales | $ 80,000.00 | $ 120,000.00 |
| Less: 2% of B | $ 1,600.00 | $ 2,400.00 |
| Amount received in current month | $ 78,400.00 | $ 117,600.00 |
ekkarill92 answered 1 year agoRelated Solutions
Smith Company started business on September 1. Smith had credit sales of $200,000 in September and...
Smith Company started business on September 1. Smith had credit
sales of $200,000 in September
and $300,000 in October. The pattern for collection of cash from
customers is expected to be 40%
in the month of sale (subject to a 2% cash discount), 50% in the
month following the month of sale,
and 7% in the second month following the month of sale, with 3%
uncollectible. How much cash
did Smith Company receive from customers on account during
October?
Tausi Corporation, a company located in Tacoma, WA, started operations in September and had the following sales.
Tausi Corporation, a company located in Tacoma, WA, started operations in September and had the following sales.
SEP
OCT
NOV
DEC
JAN
FEB
Total Sales
$400,000
$520,000
$660,000
$900,000
$720,000
$700,000
30% of all sales are cash sales. The rest are credit sales. Credit sales are collected as follows: 20% in the month of sale, 70% in the month following sale, and 10% in the second month following sale. There are no bad debts
REQUIREMENTS: (Note: As long...
1. Smith Company had the following purchases and inventory levels during September. Use this data to...
1. Smith Company had the following purchases and inventory
levels during September. Use this data to calculate the cost of
goods sold expense using the FIFO method.
September 1
Beginning Inventory
15 units at $20 each
September 10
Purchase
20 units at $25 each
September 20
Purchase
25 units at $28 each
September 30
Ending Inventory
30 units
a) $825
b) $750
c) 675
d) 600
2) Refer to the data in the previous question. What is the value
of...
1.ABC Company started business on January 1, 20xx. The company estimated that sales for the first...
1.ABC Company started business on January 1, 20xx. The company
estimated that sales for the first six months would be as
follows:
Month
Units
Dollars
January
10,000
$ 50,000
February
8,000
40,000
March
15,000
75,000
April
17,000
85,000
May
22,000
110,000
June
30,000
150,000
The company sells all items on account and expects collections
of accounts receivable to be as follows: 60% in the month of the
sale, and the remaining 40% in the month after the sale.
Required:
Compute...
Colosimo Company started business on January 1, 2021. The company estimated that sales for the first...
Colosimo Company started business on January 1, 2021.
The company estimated that sales for the first six months would be
as follows:
Month
Units
Dollars
January
12,000
$ 72,000
February
9,500
57,000
March
14,000
84,000
April
21,700
130,200
May
20,000
120,000
June
32,100
192,600
The company sells all items on account and expects
collections of accounts receivable to be as follows: 80% in the
month of the sale, and the remaining 20% in the month after the
sale.
Required:
Compute...
ABC Company started business on January 1, 20xx. The company estimated that sales for the first...
ABC Company started business on January 1, 20xx. The
company estimated that sales for the first six months would be as
follows:
Month
Units
Dollars
January
10,000
$ 50,000
February
8,000
40,000
March
15,000
75,000
April
17,000
85,000
May
22,000
110,000
June
30,000
150,000
The company sells all items on account and expects
collections of accounts receivable to be as follows: 60% in the
month of the sale, and the remaining 40% in the month after the
sale.
Required:
(a)Compute...
Colosimo Company started business on January 1, 2017. The company estimated that sales for the first...
Colosimo Company started business on January 1, 2017. The
company estimated that sales for the first six months would be as
follows:
January - 10,000 units, $60,000
February - 8,000 units, $48,000
March - 15,000 units, $90,000
April - 17,000 units, $102,000
May - 22,000 units, $132,000
June - 30,000 units, $180,000
The company sells all items on account and expects collections
of accounts receivable to be as follows: 65% in the month of the
sale, and the remaining 35%...
The Sun Pacific Company budgeted the following sales: July 200,000 August 210,000 September
The Sun Pacific Company budgeted the following sales:
July
200,000
August
210,000
September 190,000
Sales in May were 190,000 and in June 180,000. 60% of sales are
cash, 30% of sales are to be collected the next month, and the
remaining 10% in 2 months.
Budgeted purchases of the required materials for production
are:
July
100,000
August
105,000
September 95,000
Purchases in June were 90,000. 70% of purchases are cash and 30%
should be paid the next month.
Direct Labor...
Smith Company sold merchandise in the amount of $5,800 to Batter Company on September 1, with...
Smith Company sold merchandise in the amount of $5,800 to Batter
Company on September 1, with credit terms of 2/10, n/30. The cost
of the merchandise is $2,400. On September 4, Batter Company
returns some of the merchandise, which were put back into Smith's
inventory. The selling price and the cost of the returned
merchandise are $800 and $500, respectively. (Assume both companies
use the perpetual inventory method.) Batter Company's journal entry
on September 8, when they pay the amount...
1)Lantz Company has provided the following information: Cash sales totaled $200,000. Credit sales totaled $480,000. Cash...
1)Lantz Company has provided the following information:
Cash sales totaled $200,000.
Credit sales totaled $480,000.
Cash collections from customers for services yet to be provided
totaled $80,000.
A $16,000 loss from the sale of property and equipment
occurred.
Interest income was $7,800.
Interest expense was $18,000.
Supplies expense was $300,000.
Rent expense for the store was $30,000.
Wages expense was $40,000.
Other operating expenses totaled $70,000.
Unearned revenue was 4,900.
What is the amount of Lantz’s income before income taxes?...
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