Question: Barcenilla has a beginning accounts receivable balance of 140 000
Barcenilla has a beginning accounts receivable balance of $ 140,000. Barcenilla expects sales to be $ 460,000; $ 500,000; and $ 520,000, respectively, for each month in the next quarter. Based on past experience, Barcenilla estimates that 65 percent of sales will be collected in the month of sale with the remaining amount collected in the month following the sale. Barcenilla estimates that marketing costs will average 8 percent of sales while distribution costs will be 2 percent of sales plus $ 8,000 per month. What are Barcenilla’s estimated cash receipts by month for the next quarter?
Relevant QuestionsRefer to E6.12. What is Barcenilla’s anticipated accounts receivable balance at the end of each month for next quarter? Refer to E6.17. If Kallsen gives customers who pay within the month of sale a 2 percent discount, does this change your answer? Why? Murphy Company plans to produce 50,000 units in Quarter One and 60,000 units in Quarter Two. Each unit requires 6 pounds of direct materials that can be purchased for $ 4 per pound. At the beginning of Quarter One there are ...Clark, Inc., a merchandising company, has hired you to help it determine the amount and timing of purchases of office products for resale next year. The marketing function has forecasted sales of office products by quarter ...Specify in the space provided the effect of each of the following accounting events on assets, liabilities, and owners' equity. Use 1 for Increase, D for Decrease, and NA for Not Applicable.
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