1.Trapp Co. was organized on August 1 of the current year. Projected sales for trhe next three months are as follows:
August $100,000
September $185,000
October $225,000

The company expects to sell 40% of tis merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.
Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

My answer so far:
100,000+185,000+225,000=560,000
560,000x40%=224,000

2. Prepare a monthly flexible selling expense budget for Practer Company for sales volumes of $300,000, $400,000 and 600,000 based on the following data:
sales commissions 4% of sales
sales manager's salary $70,000 per month
Advertising expense $75,000 per month
Shipping expense 1% of sales
Miscellaneious selling expense 2100 per month plus 1/2% of sales:
my answer so far: PLEASE HELP:eek:
Cost Category 300,000 400,000 600,000
Budgeted variable
Overhead
sales commissions 12,000 16,000 24,000
sales manager's sal.
Advertising expense
Shipping expense 3,000 4,000 6,000

If this is homework, as I know it is, I get credit.

1). What is the total expected cash collections for August?

Total Sales - $100,000
Cash Sales - $40,000
Sales on account - $60,000
Expected Cash Collected - $60,000
($40,000 + ($60,000 / 3))

2. What is the total expected cash collections for September?

Total Sales - $185,000
Cash Sales - $74,000
Sales on account - $111,000
Expected Cash Collected - $151,000
($74,000 + $40,000 from August + (111,000 / 3)

3. What is the total expected cash collections for October?

Total Sales - $225,000
Cash Sales - $90,000
Sales on account - $135,000
Expected Cash Collected - $172,000
($90,000 + $37,000 from September + (135,000 / 3)