Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cash receipts the sales budget for perrier inc. is

Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue...

60.1K

Verified Solution

Question

Accounting

Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $140,000 June 140,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale. 5 percent uncollectible. The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $25,000, of which $6,000 represents uncollected March sales and $19,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Total Cash receipts:

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Discuss the significance of the efficient markets hypothesis to your understanding of financial reporting. Discuss the role...

Medical Sciences
1.2K views

A needle is inserted into the right somatosensory nucleus of the thalamusin the central nervous system...

Chemistry
1.2K views

Consider the titration of a 26.0-mL sample of 0.180 M CH3NH2 with 0.145 M HBr. (The...

Accounting
1.2K views

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed...

Biology
1.2K views

The primary cause of the labor strikes in the list above was theentry of women...

Basic Math
1.2K views

Add the following polynomials: (13s-7s) + (38s-9s)

Algebra
1.2K views

Which linear equation BEST represents the line of best fit for the scatterplot?A) y= 1/3...

Accounting
1.2K views

Question 2(a) re da lowinas are erlsof rescarch and...

Accounting
1.2K views

A company reports the following: Net income $132,270 Preferred dividends 9,140 Average stockholders' equity 1,411,670...

Accounting
1.2K views

When a member performs non-attest services for an attest client, management is required to designate...

Accounting
1.2K views

Tony and Suzie graduate from college in May 2021 and begin developing their new business....

Accounting
1.2K views

Carey Company's equipment account increased $800,000 during the period; the related accumulated depreciation increased $60,000....