The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: January February March Sales budget $ 185,000 $ 203,000 $ 225,000 Credit sales are collected as follows: 65 percent in the month of the sale. 20 percent in the month after the sale. 15 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $81,000 ($59,000 of which were uncollected December sales). Compute the cash collections from sales for each month from January through March
The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: January February March Sales budget $ 185,000 $ 203,000 $ 225,000 Credit sales are collected as follows: 65 percent in the month of the sale. 20 percent in the month after the sale. 15 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $81,000 ($59,000 of which were uncollected December sales). Compute the cash collections from sales for each month from January through March
Chapter7: Budgeting
Section: Chapter Questions
Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...
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Question
|
The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: |
| January | February | March | |
|---|---|---|---|
| Sales budget | $ 185,000 | $ 203,000 | $ 225,000 |
|
Credit sales are collected as follows: |
| 65 percent in the month of the sale. |
| 20 percent in the month after the sale. |
| 15 percent in the second month after the sale. |
|
The accounts receivable balance at the end of the previous quarter was $81,000 ($59,000 of which were uncollected December sales). |
| Compute the cash collections from sales for each month from January through March |
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