answer question b)
3.A.Cash Collection Budgeted sales for the third quarter of the year for Brown Company are as follows: Cash Collection Budgeted Sales July August September June $350,000 July $300,000 August 375,000 September 450,000 Total Cash Collected
The company normally collects 30 percent in the month of sale and 65 percent in the month following the sale.Five percent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at July 1 was $245,000,which represents 70 percent of June sales.
Reguired:Determine cash collection for July,August,& Sept
B.Cash Payment Schedule for Raw Material Purchases CASH PAYMENT Budgeted Purchases july aug June July $168,000 August 354,000 September 472,000
Sept
The company normally pays for 70% of its purchases in the month of purchase. The remaining 30% is paid in the following month.
Instructions: Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter.