On July 1, the Accounts Receivable balance in the general ledger of Hawk Spur is $26,000. This
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Question:
On July 1, the Accounts Receivable balance in the general ledger of Hawk Spur is $26,000. This amount is amde up of (no GST):
From April sales | From May sales | From June sales |
$2,000 | $6,000 | $18,000 |
Estimated sales for the next three months are:
July | August | September |
$40,000 | $44,000 | $18,000 |
Sales are normally 50% credit and 50% cash. Credit sales are invoiced on the last day od each month. Invoices are paid:
- 70% within one month of invoice date.
- 20% within two months of invoice date.
- 10% within three months of invoice date.
Required: A sales collections budget for the months July, August and September.
Workings - Calculating credit sales
Month | Owing | Payment Received | % Owing | Credit Sales |
April | ||||
May | ||||
June |
Sales Collections Budget
% | April | May | June | July | August | September | |
Sales | |||||||
Credit Sales | |||||||
Collections: | |||||||
1 Month | |||||||
2 Months | |||||||
3 Months | |||||||
Cash Sales | |||||||
Total collections |
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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