Information pertalning to Collection Corporation's sales revenue is presented below: November December $ 145,000 January $...
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Information pertalning to Collection Corporation's sales revenue is presented below: November December $ 145,000 January $ 98,000 Cash sales $ 116,000 Credit sales 308.000 470, 000 254, 000 Total sales $ 424, 000 $ 615,000 $ 352,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remalnder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of Inventory are on open account: 30% will be paid in the month of purchase, and the remainder pald in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted Inventory purchases in November by Collection Corporation are: Multiple Choice $276,750 $340,350. $424,000. $531,150. $559.610 Information pertalning to Collection Corporation's sales revenue is presented below: November December $ 145,000 January $ 98,000 Cash sales $ 116,000 Credit sales 308.000 470, 000 254, 000 Total sales $ 424, 000 $ 615,000 $ 352,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remalnder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of Inventory are on open account: 30% will be paid in the month of purchase, and the remainder pald in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted Inventory purchases in November by Collection Corporation are: Multiple Choice $276,750 $340,350. $424,000. $531,150. $559.610
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Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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