Question

In: Accounting

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 as you can answer one question under each category below, you do not need to answer all questions; put effort in understanding "HOW" to solve)

1. Calculate the total cash collections during the month of September

2. Calculate the total cash collections during the month of October

3. Calculate the total cash collections during the month of November

4. Calculate the total cash collections during the month of December

5. Calculate the Accounts Receivable balance as at September 30th

6. Calculate the Accounts Receivable balance as at October 31

7. Calculate the Accounts Receivable balance as at November 30th

8. Calculate the Accounts Receivable balance as at February 28th

Solutions

Expert Solution

sept oct nov Dec jan Feb
cash sale 120000 156000 198000 270000 216000 210000
credit sale 280000 364000 462000 630000 504000 490000
total sale 400000 520000 660000 900000 720000 700000
credit sales collection
sept oct nov Dec jan Feb total
sept 56000 196000 28000 280000
oct 72800 254800 36400 364000
nov 92400 323400 46200 462000
dec 126000 441000 63000 630000
jan 100800 352800 453600
feb 98000 98000
total 56000 268800 375200 485800 588000 513800
1) cash collection for September 120,000+56000= 176000
2) cash collection for october 156,000+268800= 424800
3) cash collection for November 198000+375200= 573200
4) Cash collection for December 270000+485800= 755800
5) Account receivable on september 224000
6) Account receivable oct 31 319200
7) Account receivable nov 30 406000
8) Account receivable Feb 28 442400

ekkarill92 answered 1 year ago
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