Question

In: Accounting

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the...

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale.

​

The cash collections expected in October are

a.

$320,000
b.

$304,250
c.

$248,000
d.

$382,500

Solutions

Expert Solution

Correct answer----(b) $304,250

Collection for October

Cash sales

$      80,000.00

Credit sales of October collection (240000 x 70%)

$ 1,68,000.00

Credit sales of September collection (187500 x 30%)

$      56,250.00

Total Collection in October

$ 3,04,250.00

September

October

November

Budgeted Sales

$ 2,50,000.00

$ 3,20,000.00

$ 4,10,000.00

Cash sales

$      62,500.00

$      80,000.00

$ 1,02,500.00

Credit sales of the month

$ 1,87,500.00

$ 2,40,000.00

$ 3,07,500.00

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $237,000, $304,000, and $414,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in September from accounts receivable are estimated to be
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$276,500 b.$280,000 c.$316,400...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the...
Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $243,000, $307,000, and $429,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in October from accounts receivable are estimated to be a.$247,128...
Patin Corporation began business on September 23rd of the current year. It incurred the following costs...
Patin Corporation began business on September 23rd of the current year. It incurred the following costs prior to opening to customers: $26,560 employee training, $5,000 supplies, $41,457 legal, and $10,000 accounting. How much may be deducted in the first year (the current year)? (Round final answer to the nearest whole dollar.)
The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing $84,000 was...
The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing $84,000 was purchased. Flynn estimated that the equipment’s useful life would be seven years and have a residual value of $24,500. Flynn also estimated that the equipment could be used for about 10,000 hours. It was used for 800 hours in 20x3 and 1,700 hours in 20x4. Required – Calculate depreciation expense for 20x3 and 20x4 under each of the following methods: a) Straight-line method. b)...
Mason Corporation began operations at the beginning of the current year. One of the company’s products,...
Mason Corporation began operations at the beginning of the current year. One of the company’s products, a refrigeration element, sells for $205 per unit. Information related to the current year’s activities follows. Variable costs per unit: Direct material $ 15 Direct labor 36 Manufacturing overhead 46 Annual fixed costs: Manufacturing overhead $ 600,000 Selling and administrative 860,000 Production and sales activity: Production (units) 24,000 Sales (units) 20,000 Mason carries its finished goods inventory at the average unit cost of production...
Mason Corporation began operations at the beginning of the current year. One of the company’s products,...
Mason Corporation began operations at the beginning of the current year. One of the company’s products, a refrigeration element, sells for $195 per unit. Information related to the current year’s activities follows. Variable costs per unit: Direct material $ 10 Direct labor 36 Manufacturing overhead 44 Annual fixed costs: Manufacturing overhead $ 600,000 Selling and administrative 860,000 Production and sales activity: Production (units) 24,000 Sales (units) 20,000 Mason carries its finished goods inventory at the average unit cost of production...
Mason Corporation began operations at the beginning of the current year. One of the company’s products,...
Mason Corporation began operations at the beginning of the current year. One of the company’s products, a refrigeration element, sells for $195 per unit. Information related to the current year’s activities follows. Variable costs per unit: Direct material $ 20 Direct labor 36 Manufacturing overhead 46 Annual fixed costs: Manufacturing overhead $ 600,000 Selling and administrative 860,000 Production and sales activity: Production (units) 24,000 Sales (units) 20,000 ________________________________________ Mason carries its finished goods inventory at the average unit cost of...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 40,000 $ 140,000 February $ 45,000 $ 160,000 March $ 39,000 $ 120,000 April $ 34,000 $ 119,000 May $ 44,000 $ 190,000 June $ 70,000 $ 130,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections...
Problem 3 The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing...
Problem 3 The Flynn Corporation began operations on September 1, 20x3. On that date, equipment costing $84,000 was purchased. Flynn estimated that the equipment’s useful life would be seven years and have a residual value of $24,500. Flynn also estimated that the equipment could be used for about 10,000 hours. It was used for 800 hours in 20x3 and 1,700 hours in 20x4. Required – Calculate depreciation expense for 20x3 and 20x4 under each of the following methods: a) Straight-line...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT