Spencer Company has budgeted sales for the coming months as below:

February $610,000

March $619,000

April $654,000

Mayo $ 679.000

70% of sales are on credit, the rest in cash. Credit sales are charged 40% in the month of sale, 50% in the month following the sale and 10% in the second month following the sale.

Required:

a. Calculate Spencer's cash receipts for April. (Do not round intermediate calculations.)

b. Calculate Spencer's cash receipts for May. (Do not round intermediate calculations.)

C. Calculate the balance of accounts receivable as of May 31. (Do not round intermediate calculations.)

Answer rating: 100% (QA)

a Cash receipts for April Cash sales for April 03 654000 196200 Credit sales collected in April from February credit sales 01 07 610000 42700 Credit s... View the full answer