Question

Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of the sale, 25% in the month following the sale, and 12% in the second month following the sale. The remainder is uncollectible. Based on the following budgeted sales data, what would be the budgeted total cash receipts in April? Total Sales Month $60,000 January $70,000 February $50,000 March $30,000 April

Name: parlee companys sales are 30 in cash and 70 on credit 60 of the credit sales are collected in the month of the sale 25 in the month following sale and 12 in the second month following sale t 21148
Uploaded: 2022-07-09T01:03:21-08:00
Duration: 2 min 54 s
Channel: Derrick Danso
Description: parlee companys sales are 30 in cash and 70 on credit 60 of the credit sales are collected in the month of the sale 25 in the month following sale and 12 in the second month following sale t 21148

          Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of the sale, 25% in the month following the sale, and 12% in the second month following the sale. The remainder is uncollectible. Based on the following budgeted sales data, what would be the budgeted total cash receipts in April?
Total Sales                      Month
$60,000                      January
$70,000                     February
$50,000                     March
$30,000                     April

Added by Manuela P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Derrick Danso

07/09/2022

Step 1

For January: Cash sales = 30% of $60,000 = $18,000 Credit sales = 70% of $60,000 = $42,000 For February: Cash sales = 30% of $70,000 = $21,000 Credit sales = 70% of $70,000 = $49,000 For March: Cash sales = 30% of $50,000 = $15,000 Credit sales = 70% of $50,000 Show more…

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Parlee Company's sales are 30% in cash and 70% on credit. 60% of the credit sales are collected in the month of the sale, 25% in the month following the sale, and 12% in the second month following the sale. The remainder is uncollectible. Based on the following budgeted sales data, what would be the budgeted total cash receipts in April? Total Sales Month $60,000 January $70,000 February $50,000 March $30,000 April