Safari File Edit View History Bookmarks Develop ezto.mheducation.com Spencer Com

Question

Safari File Edit View History Bookmarks Develop ezto.mheducation.com Spencer Company has budgeted sales for the upooming months as folows February 609.000 March Apri S 625.00 646,000 S 679,000 70% of the sales are credit sales, the remainder are made r cash. Credit following the sale, and 5% in the second month folowng the sale. sales are colected 45% ntho mont, or sale, SOS n no month a. Compute Spencer's cash receipts for April.(Do not round intermediate calculations.) Answer is complete but not entirely correct. 443,565 b. Compute Spencers cash receipts for May. (Do not round intermediate 3 Answer is complete but not entirely correct. $ 461,860 c. Compute the accounts receivable balance for May 31, (Do not round intermediate calculations.) Answer is complete and correct 284 025 4

Explanation / Answer

a) Cash receipt for april :

a) Cash receipt for may:

c) Account receivable balance in may 31 : (646000*70%*5%+679000*70%*55%) = 284025

April Cash sales (646000*30%) 193800 Collection from customer 45% april sales (646000*70%*45%) 203490 50% march sales (625000*70%*50%) 218750 5% feb sales (609000*70%*5%) 21315 Total cash collection in april 637555

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