Question

PROBLEM IV The XYZ Company submitted the following sales forecast for the upcoming fiscal year. 1" Quarter 2nd Quarter 3 Quarter 4th Quarter Budgeted unit sales 9,000 10,000 14,000 12,000 Selling price per unit $17.00. Management expects to collect 60% of sales in the quarter in which the sales are made, 35% in the following quarter, and 5% is expected to be uncollectible. Beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, $80,000. Required: 1) Prepare the company's sales budget and schedule of expected cash collection. 2)Assume that the company will prepare a budgeted sales balance sheet as of the 4th Quarter. Compute the accounts receivable as of the end of that Quarter.

Answer 1

DATE cash calledted Statement Quarters Particulars Q, I Q2 Q3 cey opening Account 80,000 Table cash cash collected 94800 10 2000142800 122400 on Account of sales current Quarter (Win) cash called on 53550 59500 83,300 Account of sales of previous o carter (win) T@tal cash +13711800 155,550 202300 205700 Collection working note :-, Statement of Account Receivable Pasticcllars CO2 Q3 Qy Credit sales ca 15300 179000 2,38000 204000 C9000X127 Licocxn] [14000X17] [12000117] 6oy cash Collested (6) 91,800 102.000 142,860 122400 Bod debb Caxs2) 2650 8.500 14.900 10,200 Closing Account 53.550 59,500 83300 71.400 Receivable at the end fax 35%] f Quarter - Account received at the end of yth Quarter $ 26400 TOA Shot on OnePlus Powered by Dual Camera