Question

NU Return to Blackboard Is Us Weygandt, Managerial Accounting, se Help System Announcements Exercise 185 Casa Development, Inc. has budgeted sales revenues as follows: January February March Budgeted Sales Revenues $55,000 75,000 90,000 80,000 60,000 35.000 April May June Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% following the sale, and in the second month following the sale. The other 5% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June. (Do not leave any a amounts.) CASA DEVELOPMENT, INC. Expected Cash Receipts from Sales For the Quarter Ended June 30 April June February Sales Credit Sales March Sales Credit Sales April Sales Credit Sales Cash Sales May Sales MacBook R ullo

Answer 1

Answer:

CASA DEVELOPMENT, INC.
Expected Cash Receipts from Sales
For the Quarter Ended June 30
	April	May	June
February Sales:
Credit Sales	$21,000
March Sales:
Credit Sales	$43,200	$25,200
April Sales:
Credit Sales		$38,400	$22,400
Cash Sales (80,000 x 20%)	$16,000
May Sales:
Credit Sales			$28,800
Cash Sales (60,000 x 20%)		$12,000
June Sales:
Credit Sales
Cash Sales (35,000 x 20%)			$7,000
Total Cash receipts	$80,200	$75,600	$58,200

Calculations:

Cash and credit sales:

	February	March	April	May	June
Sales	$75,000	$90,000	$80,000	$60,000	$35,000
Cash sales (20%)	$15,000	$18,000	$16,000	$12,000	$7,000
Credit sales (80%)	$60,000	$72,000	$64,000	$48,000	$28,000

Collections from credit sales:

	Credit Sales	April	May	June
February	$60,000
Received in April (60,000 x 35%)		$21,000
March	$72,000
Received in April (72,000 x 60%)		$43,200
Received in May (72,000 x 35%)			$25,200
April	$64,000
Received in May (64,000 x 60%)			$38,400
Received in June (64,000 x 35%)				$22,400
May	$48,000
Received in June (48,000 x 60%)				$28,800