Question: Please explain how to solve the problem as well because right now im only practicing and trying to teach myself. The budget director of Natalias
Please explain how to solve the problem as well because right now im only practicing and trying to teach myself.
| The budget director of Natalias Florist has prepared the following sales budget. The company had $230,000 in accounts receivable on July 1. Natalias Florist normally collects 100 percent of accounts receivable in the month following the month of sale. |
| Required: |
| a. | Complete the schedule of cash receipts by filling in the missing amount |
|
| July | August | September |
| Sales Budget | 67,000 | 70,000 | 84,000 |
| Cash Sales | 93,000 | 114,000 | 120,600 |
| Sales On Acct | 160,000 | 184,000 | 204,600 |
| Total Budget Sales |
|
|
|
| Sch. of Cash Receipts |
|
|
|
| Current Cash Sales |
|
|
|
| Plus: Coll. Cash Receivables |
|
|
|
| Total Budget Collections | $297,000 | $163,000 | 198,000 |
| b. | Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet. |
| Accounts Receivable |
|
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help