Question 5 Part A The following information pertains to Amigo Corporation: Month July August September October...

 

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Question 5 Part A The following information pertains to Amigo Corporation: Month July August September October November December Sales $30,000 34,000 38,000 42,000 48,000 60,000 Purchases $10,000 12,000 14,000 16,000 18,000 20,000 Cash is collected from customers in the following manner: Month of sale (2% cash discount)30% Month following sale Two months following sale 50% 15% Amount uncollectible 5% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required: a. Prepare a summary of cash collections for the 4th quarter. (5 Marks) b. Prepare a summary of cash disbursements for the 4th quarter. (3.5 Marks) Question 5 Part A The following information pertains to Amigo Corporation: Month July August September October November December Sales $30,000 34,000 38,000 42,000 48,000 60,000 Purchases $10,000 12,000 14,000 16,000 18,000 20,000 Cash is collected from customers in the following manner: Month of sale (2% cash discount)30% Month following sale Two months following sale 50% 15% Amount uncollectible 5% 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Required: a. Prepare a summary of cash collections for the 4th quarter. (5 Marks) b. Prepare a summary of cash disbursements for the 4th quarter. (3.5 Marks)

Answer rating: 100% (QA)

Month July August September October November December Total Sales 30000 34000 38000 42000 4... View the full answer