Question

Memphis Company anticipates total sales for April, May, and June of $960,000, $1,060,000, and $1,110,000 respectively....

Memphis Company anticipates total sales for April, May, and June of $960,000, $1,060,000, and $1,110,000 respectively. Cash sales are normally 20% of total sales. Of the credit sales, 35% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales during the month of May.

Multiple Choice

  • $719,200.

  • $819,600.

  • $1,041,600.

  • $969,600.

  • $757,600.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Correct answer-----------$757,600.

Working

35% of May's Credit sales $ 296,800.00
60% of April's credit sales $ 460,800.00
Total collection from credit customers in may $ 757,600.00

.

April May June  
Total sales $ 960,000.00 $ 1,060,000.00 $    1,110,000.00
Less: Cash sales $ 192,000.00 $      212,000.00 $       222,000.00
Credit sales $ 768,000.00 $      848,000.00 $       888,000.00
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
Memphis Company anticipates total sales for April, May, and June of $920,000, $1,020,000, and $1,070,000 respectively....
Memphis Company anticipates total sales for April, May, and June of $920,000, $1,020,000, and $1,070,000 respectively. Cash sales are normally 30% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from total sales during the month of May.
Memphis Company anticipates total sales for April, May, and June of $1,000,000, $1,100,000, and $1,150,000 respectively....
Memphis Company anticipates total sales for April, May, and June of $1,000,000, $1,100,000, and $1,150,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales during the month of May. I know the answer is $742,500 but not sure how they...
Memphis Company anticipates total sales for April, May, and June of $950,000, $1,050,000, and $1,100,000 respectively....
Memphis Company anticipates total sales for April, May, and June of $950,000, $1,050,000, and $1,100,000 respectively. Cash sales are normally 30% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are collected in the second month. Compute the amount of accounts receivable reported on the company’s budgeted balance sheet for June 30. Multiple Choice $619,500. $967,750. $539,000. $575,750....
Total sales for April, May, and June are $900,000, $700,000, and $850,000 respectively. Cash sales are...
Total sales for April, May, and June are $900,000, $700,000, and $850,000 respectively. Cash sales are normally 30% of total sales. Of the credit sales, 40% are collected in the same month as the sale, 55% are collected during the first month after the sale, and the remaining 5% are eventually not collected because of bad debts. All bad debts are written off by the end of the second month after the sale. Compute the total amount of cash received...
Beca Retailers expects credit sales in the next quarter as follows: April $79,100 May 84,800 June...
Beca Retailers expects credit sales in the next quarter as follows: April $79,100 May 84,800 June 101,000 Prior experience has shown that 64 percent of a month’s sales are collected in the month of sale, 20 percent are collected in the month following sale, and the remaining 16 percent are collected in the second month following sale. February and March sales were $82,200 and $110,000, respectively. Estimate budgeted cash receipts for April, May, and June. Collection of credit sales April...
Ridgewood Retailers expects credit sales in the next quarter as follows: April $63,300 May 96,200 June...
Ridgewood Retailers expects credit sales in the next quarter as follows: April $63,300 May 96,200 June 113,000 Prior experience has shown that 61 percent of a month’s sales are collected in the month of sale, 18 percent are collected in the month following sale, and the remaining 21 percent are collected in the second month following sale. February and March sales were $82,200 and $107,000, respectively. Estimate budgeted cash receipts for April, May, and June. Collection of credit sales April...
185) Masterson Company's budgeted production calls for 62,000 liters in April and 58,000 liters in May...
185) Masterson Company's budgeted production calls for 62,000 liters in April and 58,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 25% of the following month's budgeted materials. The April 1 inventory for this material is 15,500 liters. What is the budgeted materials purchases for April? Multiple Choice $141,525. $118,400. $86,025. $114,700. $112,850. 186) The Gardner Company expects sales for October of $254,000. Experience suggests that 55%...
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30%...
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30% credit and 70% cash. 50% of the credit sales are collected in the month of the sale, 30% in the month following the sale, and 20% in the following month. Total sales for the months of February and March were $950,000 with February having $500,000 credit sales and March $400,000. Prepare a sales budget schedule and a cash collections budget schedule for the months...
April May June Sales* $264,000 $198,000 $298,800 Cash receipts: From cash sales $132,000 $99,000 $149,400 From...
April May June Sales* $264,000 $198,000 $298,800 Cash receipts: From cash sales $132,000 $99,000 $149,400 From sales on account† 280,500 112,200 Total cash receipts $412,500 $211,200 *Half of each month’s sales are on account. March sales amounted to $198,000. †60% of credit sales is collected in the month of sale; 40% is collected in the following month.
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:...
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June: Sales Budget April May June Total Sales in units 12600 16800 14400 43800 Selling price per unit x $60 x $60 x $60 Sales revenue $756000 $1008000 $864000 $2628000 All of the sales are on credit. Quagmire collects from customers as follows: 45% of sales in the month of sale 25% in the month following the sale, and 30% in the second month following...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT