Splash Ltd. is a merchandising company that sells summer clothing to the customers. The budgeted sales...
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Splash Ltd. is a merchandising company that sells summer clothing to the customers. The budgeted sales for Splash Ltd for the next three month's operations are provided below: Budgeted Sales July August September Total $ 800,000 $ 850,000 $ 500,000 $ 2150,000 Additional Information: Splash Ltd sells goods both on credit and cash to the customers. The company expects that 50% of the sales will be for cash and paid immediately by the customers on the month of sales. The remaining 50% sales are on credit and will be paid as 20% on the month of sales and 30% to be paid in the next month. Bad debts are negligible and total sales for the month of June are $ 450,000. Required ĮMarks: 15] Prepare a Schedule of Expected Cash Collection from sales for the month of July, August and September. Splash Ltd. is a merchandising company that sells summer clothing to the customers. The budgeted sales for Splash Ltd for the next three month's operations are provided below: Budgeted Sales July August September Total $ 800,000 $ 850,000 $ 500,000 $ 2150,000 Additional Information: Splash Ltd sells goods both on credit and cash to the customers. The company expects that 50% of the sales will be for cash and paid immediately by the customers on the month of sales. The remaining 50% sales are on credit and will be paid as 20% on the month of sales and 30% to be paid in the next month. Bad debts are negligible and total sales for the month of June are $ 450,000. Required ĮMarks: 15] Prepare a Schedule of Expected Cash Collection from sales for the month of July, August and September.
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Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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