Flounder Company\'s budgeted sales and direct materials purchases are as follows

Question

Flounder Company's budgeted sales and direct materials purchases are as follows Budgeted D.M. Budgeted Sales anuary February March $273,400 242,200 344,100 530,300 37,600 46,500 Flounders sales are 30% cash and 70% credit Credit sales are collected 10% n the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Flounder's purchases are 50% cash and 50% on account, purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Prepare a schedule of expected collections from customers for March. (Round answers to 0 decimal places, e.g. 2,500.) FLOUNDER COMPANY Expected Collections from Customers March Total collections

Explanation / Answer

Prepare schedule of expected collection :

March Cash sales for march (344100*30%) 103230 January credit Sales Collection (273400*70%*36%) 68897 February credit sales collection (242200*70%*50%) 84770 March credit sales collection (344100*70%*10%) 24087 Total collections 280984

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