Question

DuPree Enterprises reported the following cash collections in July and August from credit sales: July August...

DuPree Enterprises reported the following cash collections in July and August from credit sales:

July August

From June receivables $ 41,000

From July sales 152,000 $ 38,000

From August sales 176,000

The company sells a single product for $20, and all sales are collected over a two-month period.

Required: A. Determine the number of units that were sold in July.

B. Determine the percent of credit sales collected in the month of sale and the percent of sales collected in the month following sale.

C. How many units were sold in August?

D. Determine the accounts receivable balance as of August 31.

A. Number of units ? units
B. Credit sales ?    %
C. Number of units ? units
D. Receivable balance ?
Business   Accounting   
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Homework Answers

Answer #1

Part A)

Number of unit sold in july = july sales / selling price per unit

= ( 152000+38000) /20

= 9500 Units

Part B)

% of sale collected in the month

= July sales collection in july / july sales

= 152000 / ( 152000+38000)

= 80 %

% of sales collcted in the next month

= july sales collection in august / jjuly sales

= 138000/190000

= 20 %

Part C)

Unit sold in august

= August sales / 20

= (176000/80%) / 20

=11000 Units

Part d)

Account receivable as of august 31 = august sales *20 %

= (176000/80%) * 20%

= $ 44000

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