Exam 8-9 C b ezto.mheducation.com/hm.tpx Meredith Company has budgeted sales for

Question

Exam 8-9 C b ezto.mheducation.com/hm.tpx Meredith Company has budgeted sales for the upcoming months as follows: April May June July August September $455,000 $ 467,000 $ 491,000 $521,000 503,000 $ 483,000 50% of the sales are credit sales, the remainder are cash sales. Credit sales are collected 50% in the month of sale, 40% in the month following the sale, and 6% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) sh Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.)

Explanation / Answer

June July August Cash sales   $491,000*50% = $245,500 $521,000*50% = $260,500 $503,000*50% = $251,500 Accounts receivable collections April sales $455,000 * 50% * 6% = $13,650 May sales $467,000 * 50% * 40% = $93,400 $467,000 * 50% * 6% = $14,010 June sales $491,000 * 50% * 50% = $122,750 $491,000 * 50% * 40% = $98,200 $491,000 * 50% * 6% = $14,730 July sales $521,000 * 50% * 50% = $130,250 $521,000 * 50% * 40% = $104,200 August sales $503,000 * 50% * 50% = $125,750 Total cash collected $                                                   475,300 $                                                   502,960 $                                                   496,180

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.