McEwen Company has budgeted the following credit sales during the last four months of the year:...

Question

Question

McEwen Company has budgeted the following credit sales during the last four months of the year: September, $11,000; October,

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculation of expected cash to be collected for credit sales in November (Amounts in $)

	November
Expected cash collections for credit sales:
For September (10% of Sept sales) ($11,000*10%)	1,100
For October (55% of Oct Sales) ($23,000*55%)	12,650
For November (30% of Nov Sales) ($24,000*30%)	7,200
Total cash collections for credit sales	20,950

Therefore McEwen company can expect to collect $20,950 in November for credit sales.

Hence the correct option is A) $20,950.

Add a comment

Answer 2

Similar Homework Help Questions

McEwen Company has budgeted the following credit sales during the last four months of the year:...

McEwen Company has budgeted the following credit sales during the last four months of the year: September, $14,000; October, $20,000; November $16,000; December, $33,000. Experience has shown that payment for the credit sales is received as follows: 30% in the month of sale, 55% in the first month after sale, 10% in the second month after sale, and 5% uncollectible. How much cash can McEwen Company expect to collect in November as a result of credit sales? A. $18,850 B....
East Company budgeted the following credit sales during the current year: August $85,000 September, $100,000; October,...

East Company budgeted the following credit sales during the current year: August $85,000 September, $100,000; October, $108,000; November, $80,000; December, $100,000. Experience has shown that cash from credit sales is received as follows: 20% in the month of sale, 60% in the first month after sale, 16% in the second month after sale, and 4% is uncollectible. All collections in the month of sale are subject to 1 percent cash discount. How much total cash can East Company expect to...
East Company budgeted the following credit sales during the current year: August $90,000 September, $100,000; October,...

East Company budgeted the following credit sales during the current year: August $90,000 September, $100,000; October, $108,000; November, $80,000; December, $100,000. Experience has shown that cash from credit sales is received as follows: 10% in the month of sale, 60% in the first month after sale, 26% in the second month after sale, and 4% is uncollectible. All collections in the month of sale are subject to 1 percent cash discount. Required: How much total cash can East Company expect...

Justin Company's budget includes the following credit sales for the current year: September, $38,000; October, $49,000;...

Justin Company's budget includes the following credit sales for the current year: September, $38,000; October, $49,000; November, $43,000; December, $45,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales? Multiple Choice $46,710....
Budgeted sales in Washburn Company over the next four months are given below: September October November...

Budgeted sales in Washburn Company over the next four months are given below: September October November December Budgeted sales $100,000 $160,000 $180,000 $120,000 Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The...
Zinger Corporation has budgeted sales over the next four months below: September October November December Budgeted...

Zinger Corporation has budgeted sales over the next four months below: September October November December Budgeted Sales... $140,000 $150,000 $170,000 $130,000 Twenty five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 41% of a month's credit sales are collected in the month of sale, 32% are collected in the month following sale, and 7% are collected in the second month following sale. The remainder...

During the last week of August, Oneida Company's owner approaches the bank for a $98,500 loan...

During the last week of August, Oneida Company's owner approaches the bank for a $98,500 loan to be made on September 2 and repaid on November 30 with annual interest of 15%, for an interest cost of $3,694. The owner plans to increase the store's inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Oneida's ability to repay the loan and asks the owner to forecast the...
Tiara Company has the following historical collection pattern for its credit sales: 70% collected in month...

Tiara Company has the following historical collection pattern for its credit sales: 70% collected in month of sale 15% collected in the first month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted credit sales for the last six months of the year follow. $ June July August September October November December 32,000 30,000 35,000 40,000 45,000 50,000 42,500 I Required: A. What would be the estimated total...
Wells Company reports the following sales forecast: September, $60,000; October, $75,000; and November, $90,000. All sales...

Wells Company reports the following sales forecast: September, $60,000; October, $75,000; and November, $90,000. All sales are on account. Collections of credit sales are received as follows: 25% in the month of sale, 60% in the first month after sale, and 10% in the second month after sale. 5% of all credit sales are written off as uncollectible. Prepare a schedule of cash receipts for November. WELLS COMPANY Budgeted Cash Receipts For Month Ended November 30 Cash receipts from November...

Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as...

Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as follows: Month Sales revenue August $160,000 September $155,000 October $155,000 November $115,000 December $180,000 You estimate that you will collect 35% of sales revenue in the month of sale, 35% in the following month, 25% two months after the sale, and the remaining 5% three months after the sale. Required: Compute budgeted cash inflows for November and December. November = $ December...

McEwen Company has budgeted the following credit sales during the last four months of the year:...

Homework Answers