Question

The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as...

The Uli Antique Mall budgeted credit sales in the first quarter of 2018 to be as follows:

January

$199,000

February

211,000

March

226,000


Credit sales in December 2017 are expected to be $274,000. The company expects to collect 81 percent of a month’s sales in the month of sale and 19 percent in the following month.

Estimate cash receipts for each month of the first quarter of 2018.

Collection of credit sales

January

February

March

Collection of December sales

$

$

$

Collection of January sales

Collection of February sales

Collection of March sales

$

$

$

Homework Answers

Answer #1
Ans. Schedule of Expected Cash Collection
Collection of credit sales January February March
Collection of December sales $52,060
Collection of January sales $161,190 $37,810
Collection of February sales $170,910 $40,090
Collection of March sales $183,060
Total cash collection $213,250 $208,720 $223,150
Calculation of Cash collections:
January February March
Collection of December sales $274,000 * 19%
Collection of January sales $199,000 * 81% $199,000 * 19%
Collection of February sales $211,000 * 81% $211,000 * 19%
Collection of March sales $226,000 * 81%
*19% of the credit sales of March month will be collected in April.
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