Question

Salem Company reported the following information for 2018: October November December Budgeted sales $300,000 $320,000 $360,000...

Salem Company reported the following information for 2018:

 October November December
Budgeted sales $300,000 $320,000 $360,000
Budgeted purchases $120,000 $128,000 $144,000

  • All sales are on credit.
  • Customer amounts on account are collected 60% in the month of sale and 40% in the following month.

Instructions:
Compute the amount of cash Salem will receive during November. Show your work.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Amount of cash Salem will receive in the month if November is. $312000

As clearly told , 60 % of sale amount is collected in current month and 40% in the following month

For November

Sale of November 320000

60%of 320000 is 192000

40% amount of October is to be received in November

300000*40% is 120000

Total cash received will be 120000 + 192000 = $312000

If payment of purchases to be made then cash available will be 312000 - 128000 =$184000

Pls like if logic explained

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Simone Company reported the following information for 2020:          September October November December January Budgeted sales $240,000...
Simone Company reported the following information for 2020:          September October November December January Budgeted sales $240,000 $310,000 $290,000 $360,000 $200,000 Budgeted purchases $90,000 $120,000 $128,000 $144,000 $88,000 Available information: Cost of goods sold is 35% of sales. Simone purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Accounts payable is used only for inventory acquisitions. How much is the budgeted balance for Accounts Payable at October 31, 2020? Select one: a. $48,000...
Vaughan Inc. reported the following information for​ 2021: ​October November December Budgeted sales ​$460,000 $440,000 $540,000...
Vaughan Inc. reported the following information for​ 2021: ​October November December Budgeted sales ​$460,000 $440,000 $540,000 Budgeted purchases ​$240,000 $256,000 $288,000 ​• All sales are on credit. ​• Customer amounts on account are collected​ 50% in the month of sale and​ 50% in the following month. ​• Cost of goods sold is​ 35% of sales. ​• Vaughan purchases and pays for merchandise​ 60% in the month of acquisition and​ 40% in the following month. ​• Accounts payable is used only...
Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019...
Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019 (Budgeted) Cash sales $ 120,000 $ 124,000 $ 76,000 Credit sales 288,000 416,000 212,000 Total sales $ 408,000 $ 540,000 $ 288,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next...
Bluebear Corporation budgeted sales for the last four months of 2018: Month Sales September $360,000 October...
Bluebear Corporation budgeted sales for the last four months of 2018: Month Sales September $360,000 October 400,000 November 350,000 December 410,000 Historically, the cash collection of sales have been as follows: 65 percent in month of sale 25 percent in month following sale 8 percent in second month following sale 2 percent uncollectible The company allows a 2 percent cash discount for payments made by customers during the month of the sale. July and August sales were $405,000 and $275,000,...
It is November 1 of Year 1. Sales for Jude Company for November and December of...
It is November 1 of Year 1. Sales for Jude Company for November and December of Year 1 and January (of Year 2) are forecasted to be as follows: November, 300,000; December 700,000; January, 200,000 100% of sales are credit sales. Of these credit sales, 15% are collected during the month of sale, 25% in the following month, 50% in the second following month, and 10% are never collected. Total sales for September and October of Year 1 were 100,000...
1) Budgeted sales (in units) for the Rockwall Energy Drink Company are as follows: September 45,000...
1) Budgeted sales (in units) for the Rockwall Energy Drink Company are as follows: September 45,000 units October 60,000 units November 40,000 units December 75,000 units The company wishes to have 10% of the next month’s sales on hand at the end of each month. How much is budgeted production for November? A) 43,500 units B) 40,000 units C) 47,500 units D) 36,000 units 2) SalaRita’s sales are 32% cash and 68% credit. Of the credit sales, 40% of credit...
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November,...
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) $ 46,000 September sales (actual) $ 56,000 October sales (estimated) $ 26,000 November sales (estimated) $ 76,000 December sales (estimated) $ 66,000 Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following...
It is November 1 of Year 1. Sales for Burt Company for November and December of...
It is November 1 of Year 1. Sales for Burt Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 300,000; December 700,000; January, 200,000 On average, cost of goods sold is 60% of sales. During this period, Burt Company expects inventory levels to remain constant. This means that inventory purchases are expected to equal the amount of cost of goods sold. 90% of purchases are on credit. Of the...
Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash sales $...
Information pertaining to Yekstop Corp.'s sales revenue is presented below: November December January Cash sales $ 107,000 $ 136,000 $ 89,000 Credit sales 299,000 461,000 245,000 Total sales $ 406,000 $ 597,000 $ 334,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an...
It is November 1 of Year 1. Sales for Kadan Company for November and December of...
It is November 1 of Year 1. Sales for Kadan Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 400,000; December 600,000; January, 200,000 100% of sales are credit sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, and 65% in the second following month; 5% are never collected. Total sales for September and October of Year 1 were 100,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT