JAMES Trading expects its June sales to be P300 000, which is 25% higher that its...

Transcribed Image Text:

JAMES Trading expects its June sales to be P300 000, which is 25% higher that its May sales. Purchases were P200 000 in May and are expected to be P240 000 in June. All sales are on credit and are collected as follows: 80% in the month of the sale and 20% in the following month. All payments in the month of sales are given 2% discount. Sixty percent of purchases are paid in the month of purchase to take advantage of the purchase term 1/10, n/40. The remaining amount is paid in the following month. The beginning cash balance on June 1 is P20 000. Determine the following 10. Cash receipts for the month of June 11. Cash disbursement for the month of June 12. Ending cash balance on June 30 JAMES Trading expects its June sales to be P300 000, which is 25% higher that its May sales. Purchases were P200 000 in May and are expected to be P240 000 in June. All sales are on credit and are collected as follows: 80% in the month of the sale and 20% in the following month. All payments in the month of sales are given 2% discount. Sixty percent of purchases are paid in the month of purchase to take advantage of the purchase term 1/10, n/40. The remaining amount is paid in the following month. The beginning cash balance on June 1 is P20 000. Determine the following 10. Cash receipts for the month of June 11. Cash disbursement for the month of June 12. Ending cash balance on June 30

Answer rating: 100% (QA)

To determine the cash receipts cash disbursements and ending cash balance for the month of June we n... View the full answer