104) Kline Corporation has prepared the following sales budget:

Month   Cash SalesCredit Sales

May$ 80,000$340,000

June100,000400,000

July90,000 370,000

August120,000460,000

September110,000380,000

Collections are 40 percent in the month of sale, 45 percent in the month following the sale, and 10 percent two months following the sale. The remaining 5 percent is expected to be uncollectible.

Required: Prepare a schedule of cash collections for July through September.

105) Moses, Inc. prepared the following sales budget:

Month       Cash Sales Credit Sales

August$70,000$140,000

September64,000 146,000

October54,000132,000

November50,000122,000

December66,000150,000

Collections are 40 percent in the month of sale, 50 percent in the month following the sale, and 10 percent two months following the sale. No uncollectible accounts are anticipated.

Required: Prepare a schedule of cash collections for October through December.



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