On February 15 th you received a report containing the actual Sales data for Yab
ID: 2551074 • Letter: O
Question
On February 15th you received a report containing the actual Sales data for Yabsley Corporation for the month of January, and forecasted Sales data for the current month and the next 4 months - see below. Half of Yabsley Corporation sales are on account, and the collection schedule is 70% in the month of sale and 30% the following month. They do not expect any amounts to be uncollectible.
January
February
March
April
May
June
$240,000
$100,000
$140,000
$120,000
$180,000
$200,000
Required
1. The owner of Yabsley Corporation wants you to prepare a schedule of expected Cash Receipts/Collections for the current month (February) and each of the next 4 months and a total column for the cash collected over the 5- month period as at June 30.
2. What is the ending Acc/Receivable balance on June 30.
On February 15th you received a report containing the actual Sales data for Yabsley Corporation for the month of January, and forecasted Sales data for the current month and the next 4 months - see below. Half of Yabsley Corporation sales are on account, and the collection schedule is 70% in the month of sale and 30% the following month. They do not expect any amounts to be uncollectible.
January
February
March
April
May
June
$240,000
$100,000
$140,000
$120,000
$180,000
$200,000
Explanation / Answer
1)
Particulars
Jan
Feb
March
April
May
30-Jun
July
Sales
240000
100000
140000
120000
180000
200000
Collection in same month
70%
168000
70000
98000
84000
126000
140000
Collection in next month
30%
72000
30000
42000
36000
54000
60000
Cash Collected
168000
142000
128000
126000
162000
194000
60000
2) Account Receivable as on June 30 is $ 60,000
1)
Particulars
Jan
Feb
March
April
May
30-Jun
July
Sales
240000
100000
140000
120000
180000
200000
Collection in same month
70%
168000
70000
98000
84000
126000
140000
Collection in next month
30%
72000
30000
42000
36000
54000
60000
Cash Collected
168000
142000
128000
126000
162000
194000
60000
2) Account Receivable as on June 30 is $ 60,000
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