Question
In: Accounting
Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale.
Harrti Corporation has budgeted for the following sales:
July August September October November December
$455,000 $557,000 $663,000 $823,000 $773,000 $733,000
Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?
$733,000
$659,700
$891,600
$231,900
Solutions
Expert Solution
- On 31 Dec, the Account receivable balance will consist
of:
>30% of November sale [as 10% was received in Nov, and 60% in Dec] = $ 773000 x 30% = $ 231,900
>90% of December sale [as 10% was collected in Dec] = $ 733000 x 90% = $ 659,700 - Total accounts receivables on Dec 31
= $ 231900 + 659700
= $ 891,600 - Correct Answer = Option #3: $ 891,600
ekkarill92 answered 2 years agoRelated Solutions
All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale.
Black Horse Transportation's sales budget for the first quarter follows:
January February March $125,000 300,000 290,000
All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts.
The March cash receipts are: Select one:
A. $250,500 B. $172,500 C. $102,500 D. $260,000
3) 60 % percent of Putnam Corporation's sales are collected in the month of sale, 30%...
3) 60 % percent of Putnam Corporation's sales are collected in
the month of sale, 30% in the month following sale, and 10% in the
second month following sale. The following are budgeted sales data
for the company:
January
February
March
April
Budgeted sales
$200,000
$300,000
$350,000
$250,000
Total budgeted cash collections in April would be:
A) $175,000
B) $150,000
C) $285,000
D) $255,000
4) Half of Curry Corporation's sales are on account (credit)-
the other half is cash on...
#10 Sharon Corporation collects 10% in the second month following sale, 55% in the month following...
#10
Sharon Corporation collects
10%
in the second month following sale,
55%
in the month following sale and
30%
of a month's sales in the month of sale. The company has found
that
55%
of their sales are uncollectible. Budgeted sales for the
upcoming four months are:
August budgeted sales
$$340,000
September budgeted sales
$ $310,000
October budgeted sales
$ $380,000
November budgeted sales
$ $230,000
The amount of cash that will be collected in November is
budgeted to be
Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15%...
Receivables are collected 40% in the
month of sale, 45% in the month following sale, and 15%
in the second month following sale.
Budgeted
sales: July
$28,000, August $24,000, September $30,000
Determine
the September ending receivables balance:
1.b. The budgeted sales volume
is 8,700 units. Inventories planned for the period :
Beginning Ending
Direct
material 8,000 8,500
Finished
goods 2,400 2,800
Each
unit of finished goods requires four units of direct material in
production.
Work in process inventory is zero at the beginning and end of
the period....
Eastern Corporation collects 45% in the second month following sale, 40% in the month following sale...
Eastern Corporation collects 45% in the second month following
sale, 40% in the month following sale and 15% of a month's sales in
the month of sale. Budgeted sales for the upcoming four months are:
April budgeted sales $ 60,000. May budgeted sales. $180,000 June
budgeted sales $250,000. July budgeted sales $220,000. The amount
of cash that will be collected in July is budgeted to be.
Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the...
Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be: Multiple Choice $175,000 $275,000 $70,000 $30,000
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows. Month Units April 2,530 May 2,420 June 2,310 The
target ending inventory of finished products is as follows. March
31 2,050 April 30 2,300 May 31 2,100 June 30 2,300 2 units of
material are required for each unit of finished product. Production
for July is estimated at 2,710 units to start building inventory
for the fall sales period. Rensing’s policy is to have an inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,590
May
2,450
June
2,360
The target ending inventory of finished products is as
follows.
March 31
2,030
April 30
2,240
May 31
2,170
June 30
2,330
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,620 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,600
May
2,420
June
2,320
The target ending inventory of finished products is as
follows.
March 31
2,010
April 30
2,270
May 31
2,100
June 30
2,360
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,670 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,600
May
2,500
June
2,380
The target ending inventory of finished products is as
follows.
March 31
2,030
April 30
2,290
May 31
2,140
June 30
2,380
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,780 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Respond to the following in a minimum of 175 words: Discuss what elements should be present...
- 1) The 3rd bright fringe of a double slit interference pattern is 30.0 cm above the...
- A solar cell generates a potential difference of 0.320 V when a 445.0 ? resistor is...
- A ceiling fan consists of a small cylindrical disk with 5 thin rods coming from the...
- You measure the following quantities as A = 1.0 m ± 0.2 m, B = 2.0...
- Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
- When the electricity goes out on your campus, a backup source powers the servers that handle...
ADVERTISEMENT