Acct- expected cash collections. Exercise 7-1 Schedule of Expected Cash Collecti
ID: 2482137 • Letter: A
Question
Acct- expected cash collections.Exercise 7-1 Schedule of Expected Cash Collections [LO2) The tolowing information applies to the questions aisplayed below Mowest products is·wholesase ostroutor of lear rakes. Thus, peak tales occur n August or eacn year as shown in the company's saies budget for the third quarter, given below 9iven below August SeptemberTotal Juty s600,000 $ 900,000 $500,000 2.000,000 Budgeted sales (all on account From past experience, te company has learned at 20% saie, another 70% are collected in the mom, second month folowing sale. Bad debts are negligible and can be ignored. May sales totaled $430,000, and June salies totaied $540,000 or a morms sales are collected in the month of are collected in the month following sale, and the remaining 10% are collected in the Section Break Exercise 7-1 Schedule of Expected Cash Collections [LO2] Award 2.50 points Exercise 7-1 Part 1 a schedule of expected cash collections from sales, by month and in total, for the third quarter (Do not round intermediate calculations. Leave no cells blank be certain to enter "0" wherever required. ) Schedule of Expected Cash Collections August September Total May sales June sales July sales August sales September sales Total cash collections Hints
Explanation / Answer
schedule of cash collection July August September Total May sales 430000 43000 43000 June sales 540000 378000 54000 432000 July sales 600000 120000 420000 60000 600000 Aug sales 900000 180000 630000 810000 Sep sales 500000 100000 100000 Total cash collection 541000 654000 790000