Question

peak sales for Midwest products, a wholesale distributor of leaf rakes, occur in August. the company’s sales budget for the third quarter showing these peak sales is given bel

of Marx Chapter 23 Lab Agent X + connectmheducation.com/Mlow/connect.html Maps News !! Outlook 3 Lab Assignment Helps Peak sales for Midwest Products, a wholesale distributor of leaf rakes, occur in August. The company's sales budget for the third quarter showing these peak sales is given below July August September Quarter Budgeted sales (all on account) $600.000 $900.000 $500.000 $2.000.000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale another 70% are collected in the month following the sale, and the remaining 10 are collected in the second month following the sale Bad debts are negligible and can be ignored. May sales totaled $430,000, and June sales totaled $540,000 Required 1.) Prepare a schedule of expected cash collections from sales by month and in total, for the third quarter September May Sales June Sales Uuly Sales Fre 1 of 7 8 Next >

Answer 1

Solution:

Schedule of expected cash collection - Midwest Products
Particulars	July	August	September	Total
Cash received for May Sale	$43,000.00			$43,000.00
Cash received for June Sale	$378,000.00	$54,000.00		$432,000.00
Cash received for July Sale	$120,000.00	$420,000.00	$60,000.00	$600,000.00
Cash received for August Sale		$180,000.00	$630,000.00	$810,000.00
Cash received for September Sale			$100,000.00	$100,000.00
Budgeted Cash Collection	$541,000.00	$654,000.00	$790,000.00	$1,985,000.00