Emily32
Jul 23, 2008, 10:17 AM
The following is the sales budget for the Smithe and Wreston Company for the first quarter of 20X1
January February March
Sales Budget $90,000 $100,000 $120,000
The aging of credit sales is
30% collected in the month of sale
40% collected in the month after sale
The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 0f that amount is uncollected December sales.
a) Compute the sales for December
b) Compute the cash collections from sales for each month from January through March
January February March
Sales Budget $90,000 $100,000 $120,000
The aging of credit sales is
30% collected in the month of sale
40% collected in the month after sale
The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 0f that amount is uncollected December sales.
a) Compute the sales for December
b) Compute the cash collections from sales for each month from January through March