Question

The following is the sales budget for Coore, Inc., for the first quarter of 2019: January $141,000 February $158,000 March $173,000 Sales budget Credit sales are collected as follows: 65 percent in the month of the sale 20 percent in the month after the sale 15 percent in the second month after the sale The accounts receivable balance at the end of the previous quarter was $97,750 ($71,050 of which was uncollected December sales). a. Compute the sales for November. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Compute the sales for December. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) a. November sales b. December sales January collections February collections March collections c.

Answer 1

Answer to Part a & b.
Accounts Receivable for Qtr ended December=(November Sales* 15%) +(December Sales *35%)
$97,750 = (November Sales * 15%) + $71,050
November Sales * 15% = $26,700
November Sales = $178,000

Answer to Part b.

December Uncollected Sales = $71,050
December Uncollected Sales = 35% of December Sales
$71,050 = December Sales * 35%
December Sales = $203,000

Answer to Part c.

January Collection = (November Sales * 15%) + (December Sales * 20%) + (January Sales * 65%)
January Collection = ($178,000 * 15%) + ($203,000 * 20%) + ($141,000 * 65%)
January Collection = $158,950

February Collection = (December Sales * 15%) + (January Sales * 20%) + (February Sales * 65%)
February Collection = ($203,000 * 15%) + ($141,000 * 20%) + ($158,000 * 65%)
February Collection = $161,350

March Collection = (January Sales * 15%) + (February Sales * 20%) + (March Sales * 65%)
March Collection = ($141,000 * 15%) + ($158,000 * 20%) + ($173,000 * 65%)
March Collection = $165,200