Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's...

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Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's experience is that 40 percent of sales are cash, and the remainder is on account. Accounts receivable are paid: 70 percent of accounts receivable are paid in the month of sale and 25 percent in the following month. A. What are the expected cash receipts on accounts receivable in August for July sales? B. What are the expected cash receipts on accounts receivable in August for August sales? C. What are the total expected cash receipts on accounts receivable in August? D. What are the total expected cash receipts in August? S E. How much of July sales is deemed to be uncollectible? Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler's experience is that 40 percent of sales are cash, and the remainder is on account. Accounts receivable are paid: 70 percent of accounts receivable are paid in the month of sale and 25 percent in the following month. A. What are the expected cash receipts on accounts receivable in August for July sales? B. What are the expected cash receipts on accounts receivable in August for August sales? C. What are the total expected cash receipts on accounts receivable in August? D. What are the total expected cash receipts in August? S E. How much of July sales is deemed to be uncollectible?

Answer rating: 100% (QA)

To calculate the expected cash receipts on accounts receivable for each scenario we need to consider the sales the portion of sales paid in cash and t... View the full answer