Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March $54,000 April 63,000 May 45,000 June 60,000 July 71,000 August 75,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 45 percent are collected in the month of sale, 35 percent are collected in the following month, and 10 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August.

Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March $54,000 April 63,000 May 45,000 June 60,000 July 71,000 August 75,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 45 percent are collected in the month of sale, 35 percent are collected in the following month, and 10 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $54,000 June 63,000 July 45,000 August $60,000 71,000 75,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 45 percent are collected in the month of sale, 35 percent are collected in the following month, and 10 percent are collected two months after sale. Sales Prepare a monthly cash receipts schedule for the firm for March through August. Simpson Glove Company Cash Receipts Schedule February $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts January $ March - $ $ April $ $ May $ $ $ June $ $ July $
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