Question

Its collection history indicates that credit sales are collected as follows Gem Service anticipates the following sales revenue over a five-month period: (Click the icon to view the sales data.) i Click the icon to view the collections data.) The company's sales are 20 % cash and 80 % credit How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar.) Gem Service Cash Collections Budget Data Table For the Months of January through March January Cash sales 3,160 March November December January February Collection of credit sales: S 10,000 S 15,800 ... . .... $ 16,900 Sales reverue. $ 13,200 14,000 3,160 25% Month of sale 1600 50% Month after Done Print 2,704 20% Two months after 9992 Tolal cash collections More Info 25% in the month of the sale 50% in the month after the sale 20 % two months after the sale 5% are never collected Print Done Enter any number in the edit fields and then click Check Answer. ? parts 3 remaining Clear All Check Answer

Answer 1

WORKING NOTES:
	SCHEDULE OF THE CASH RECEIPT FOR THE MONTH OF JAN , FEB, MAR AND TOTAL
	PARTICULARS	Nov	Dec	Jan	Feb	Mar
	Sales	$            16,900	$            10,000	$               15,800	$               13,200	$                14,000
	Cash Sales 20% (A)	$               3,380	$               2,000	$                 3,160	$                 2,640	$                  2,800
	Net Amount receivalbe from credit sales	$            13,520	$               8,000	$               12,640	$               10,560	$                11,200
	25% in month of Sales	$               3,380	$               2,000	$                 3,160	$                 2,640	$                  2,800
	50% in 1 month of after Sales		$               6,760	$                 4,000	$                 6,320	$                  5,280
	20% 2 month after Sales			$                 2,704	$                 1,600	$                  2,528
				$               13,024	$               13,200	$                13,408
SOLUTION:
	SCHEDULE OF THE CASH RECEIPT FOR THE MONTH OF JAN , FEB, MAR AND TOTAL
		JANUARY	FEBRUARY	MARCH
	Cash Sales	$               3,160	$               2,640	$                 2,800
	Collection of credit Sales
	25% month of Sales	$               3,160	$               2,640	$                 2,800
	50% Month After	$               4,000	$               6,320	$                 5,280
	20% Two month After	$               2,704	$               1,600	$                 2,528
	Total Cash Collection	$            13,024	$            13,200	$               13,408