Phillip Bell
Nov 14, 2012, 03:25 PM
The following is the sales budget for Shleifer, Inc. for the first quarter of 2010:
January February March
Sales budget $173,000 $184,000 $205,000
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 $79,800 ($57,200 of which were uncollected December sales).
a. Compute the sales for November.
b. Compute the sales for December.
c. Compute the cash collections from sales for each month from January through March.
January February March
Sales budget $173,000 $184,000 $205,000
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 $79,800 ($57,200 of which were uncollected December sales).
a. Compute the sales for November.
b. Compute the sales for December.
c. Compute the cash collections from sales for each month from January through March.