Question
In: Accounting
The LaPann Company has obtained the following sales forecast data: July August September October Cash sales...
The LaPann Company has obtained the following sales forecast data:
July August September October
| Cash sales | $80,000 | $70,000 | $50,000 | $60,000 |
| Credit sales | 240,000 | 220,000 | 180,000 | 200,000 |
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the following the month of sale and the remainder in the second month following the month of sale. There are no bad debts.
The budgeted accounts receivable balance on September 30 would be:
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Expert Solution
| For budgeted accounts receivable balance on September 30 calculation would be as under: | ||||
| July | August | September | October | |
| Cash sales | $ 80,000 | $ 70,000 | $ 50,000 | $ 60,000 |
| Credit sales | $ 240,000 | $ 220,000 | $ 180,000 | $ 200,000 |
| Total Sales | $ 320,000 | $ 290,000 | $ 230,000 | $ 260,000 |
| Cash Receipts | ||||
| Cash sales | $ 80,000 | $ 70,000 | $ 50,000 | $ 60,000 |
| Current month credit sales | $ 48,000 | $ 44,000 | $ 36,000 | $ 40,000 |
| Prev month credit sales | $ 168,000 | $ 154,000 | $ 126,000 | |
| Prev 2nd month credit sales | $ 24,000 | $ 22,000 | ||
| Total Collection | $ 128,000 | $ 282,000 | $ 264,000 | $ 248,000 |
| Accounts Receivable | $ 192,000 | $ 200,000 | $ 166,000 | $ 178,000 |
|
Budgeted Accounts Receivable balance as on September 30 is $ 166,000. Please Like. |
||||
ekkarill92 answered 2 years agoRelated Solutions
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July
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August
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September
$605,000
October
$860,000
November
$715,000
December
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1. What is the budgeted total cash collected in December?
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Question 3 – Cash Budgeting Henry’s forecasted data is as follows: June July August September October...
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July
August
September
October
Credit Sales
360,000
330,000
300,000
390,000
660,000
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210,000
240,000
180,000
270,000
600,000
From past experience Henry’s has found that Accounts
Receivable pay as follows:
60% in the month the sale
30% in the month following the
sale
8% two months after the
sale
2% are never collected (become bad
debts).
It is Henry’s policy to pay Accounts Payable in the month
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Harrti Corporation has budgeted for the following sales:
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September $ 617,000
October $ 892,000
November $ 750,000
December $ 710,000
Sales are collected as follows: 15% in the month of sale; 65% in the month following the sale; and the remaining 20% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?
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
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Budgeted purchases of the required materials for production
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105,000
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Direct Labor...
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220,000
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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
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July
110,000
August
115,000
September 95,000
Purchases in June were 90,000. 70% of purchases are cash and 30%
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Direct Labor...
The Sun Pacific Company budgeted the following sales: July 210,000 August 220,000 September
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210,000
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220,000
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cash, 30% of sales are to be collected the next month, and the
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110,000
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September
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$
31,000
$
39,000
$
43,000
Purchases
17,670
22,230
31,000
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Selling expenses are 20% of sales, administrative expenses are 12%
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Prepare a schedule of budgeted cash payments for August and
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HECTOR COMPANY
Budgeted Cash Payments
For...
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