Question

Wells Company reports the following sales forecast: September, $46,000; October, $67,000; and November, $78,000. All sales...

Wells Company reports the following sales forecast: September, $46,000; October, $67,000; and November, $78,000. All sales are on account. Collections of credit sales are received as follows: 25% in the month of sale, 60% in the first month after sale, and 10% in the second month after sale. 5% of all credit sales are written off as uncollectible. Prepare a schedule of cash receipts for November.

WELLS COMPANY
Budgeted Cash Receipts
For Month Ended November 30
Cash receipts from November cash sales
Collection of October’s sales
Collection of September’s sales
Total budgeted cash receipts
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

While preparing the schedule for cash receipts for November, we will take receipts of the amount of 25% of november sales, 60% of october sales and 10% of september sales. Uncollectible sales of 5% will not be taken because it is not cash receipt.

Budgeted cash receipts for the month ended November 30 :

Budgeted sales $78000

Cash receipts from November cash sales (25% * $78000) $19500

Collection of October's sales (60% * $67000) $40200

Collection of September's sales (10% * $46000) $4600

Total budgeted cash receipts $64300

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
Wells Company reports the following sales forecast: September, $46,000; October, $64,000; and November, $73,000. All sales...
Wells Company reports the following sales forecast: September, $46,000; October, $64,000; and November, $73,000. All sales are on account. Collections of credit sales are received as follows: 25% in the month of sale, 60% in the first month after sale, and 10% in the second month after sale. 5% of all credit sales are written off as uncollectible. Prepare a schedule of cash receipts for November.
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,...
Graham Potato Company has projected sales of $9,600 in September, $13,000 in October, $19,600 in November,...
Graham Potato Company has projected sales of $9,600 in September, $13,000 in October, $19,600 in November, and $15,600 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.    Also assume Graham’s cash payments for November and December...
The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales...
The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales $80,000 $70,000 $50,000 $60,000 Credit Sales $240,000 $220,000 $180,000 $200,000 The regular pattern of collection of credit sales is 30% in the month of sale and 70% in the month following the month of sale.  There are no bad debts. The budgeted accounts receivable balance on September 30th is: $126,000 $154,000 $161,000 $186,000
Graham Potato Company has projected sales of $9,600 in September, $13,000 in October, $19,600 in November,...
Graham Potato Company has projected sales of $9,600 in September, $13,000 in October, $19,600 in November, and $15,600 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.    Also assume Graham’s cash payments for November and December...
Budgeted sales at Ikkeep Corporation over the next four months are given below: September $150,000 October...
Budgeted sales at Ikkeep Corporation over the next four months are given below: September $150,000 October $160,000 November $180,000 December $140,000 The company estimates that 25% of the sales are for cash, and 75% on credit. Collections for sales on account follow a stable pattern as follows: 50% will be collected in the month of the sale, 30% in the month following the sale, 15% in the second month following the sale, and the rest uncollectible. What would be the...
Moore Inc. had the following historical pattern for its credit sales: 70% collected in the month...
Moore Inc. had the following historical pattern for its credit sales: 70% collected in the month of sale 20% collected in the firs month after sale 8% collected in the second month after sale 2% uncollectible The sales on open account (credit sales) have been budgeted for the last four months of the year as shown below: September $12,000 October $13,000 November $10,000 December $12,000 Required: a. The estimated total cash collections by the company during December from accounts receivable...
Lee Company provides the following data for the months of July through October: Month                            
Lee Company provides the following data for the months of July through October: Month                                     Sales                             Purchases July                                         $180,000                      $105,000 August                                    165,000                      120,000 September                             150,000                          90,000 October                                  195,000                      135,000 Collections from customers are normally 70% in the month of sale and 30% in the following month. All purchases are on credit and paid in cash in the following month. November sales are budgeted to be $165,000, and November purchases are forecast to be $150,000. Cash disbursements for expenses in November...
ABC Company has the following historical collection pattern for its credit sales: 70% collected in month...
ABC Company has the following historical collection pattern for its credit sales: 70% collected in month of sale 15% collected in the first month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Credit sales are for the last 6 months are as follows: July $60,000 August $70,000 September $80,000 October $90,000 November $100,000 December $85,000 the estimated total cash collections during october from accounts receivable would be
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit...
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $117,000 November 146,000 December 214,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT