Question: Wells Company reports the following sales forecast: September, $ 55,000; October, $ 66,000; and November, $ 80,000. All sales are on account. Collections of credit

Wells Company reports the following sales forecast: September, $ 55,000; October, $ 66,000; and November, $ 80,000. All sales are on account. Collections of credit sales are received as follows: 20% in the month of sale, 70% in the first month after sale, and 10% in the second month after sale. Prepare a schedule of cash receipts for November.

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

WELLS COMPANY Budgeted Cash Receipts For Month En... View full answer

blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

267-B-C-A-B (716).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

The Candy Shoppe reports the following sales forecast: August, $110,000; September, $120,000. Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month...

Q:

The Candle Shoppe reports the following sales forecast: August, $ 150,000; September, $ 170,000. Cash sales are normally 40% of total sales and all credit sales are expected to be collected in the...

Q:

The Guitar Shoppe reports the following sales forecast: August, $150,000; September, $170,000. Cash sales are normally 40% of total sales, 55% of credit sales are collected in the month following...

Q:

Melissa is a sole trader. Her capital gains and capital losses for 2020-21 are 27,000 and 700 respectively. She has capital losses brought forward from 2019-20 of 12,900 and she also has unrelieved...

Q:

You are looking at changing the credit policy on credit sales from n60 to either n30 or n45. If the collection period is decreased, you can expect decreases in average accounts receivable, the...

Q:

Which shopbot is easiest to use? The hardest? Why?

Q:

What factors contribute to whether an individual finds someone else to be attractive?

Q:

What type of research studies lend themselves to the use of e-mail for survey research? What are the advantages and disadvantages of using e-mail?

Q:

Suppose you have a credit card balance of $ 5 0 0 that you were unable to pay off. During the current month you purchase another $ 2 5 0 worth of products. You made a payment during the grace period...

Q:

Digital Controls, Inc. (DCI), manufactures two models of a radar gun used by police to monitor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the smaller...

Q:

Repeat Example 2.8 for a load drawing rated current from the transformers at unity power factor.

Q:

Q. Explain about fundamentals of baccarat, game rules, and why baccarat is so popular with high rollers worldwide.

Q:

5.16 Sleep duration of college students. In Example 5.4, the daily sleep duration among college students was approximately Normally distributed with mean = 7.13 hours and standard deviation = 1.67...

Q:

A credit reporting company places a fax machine in the office of a mortgage lender, so that the credit reporting company can easily transmit requests for credit reports and the mortgage lender can...

Q:

1.Describe the concept of Communities of Practice. Why are "Communities of practice" Important? (2 Marks) 2.How can organizations cultivate communities of practice? How can these communities of...

Q:

Your target audience for this project is somebody completely unaware of MS SharePoint, they have absolutely no idea what they are. This should make it easy when choosing how to present your...

Q:

=+1. Describe the motivational strategies Hilton uses.

Q:

Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a countrys potential output with globalization if that countrys costs of production fall. Explain your...

Q:

How can you differentiate between facts and opinions? Why can both be useful?

Q:

Each Apple retail store has several departments. Why is it useful for its management to (a) Collect accounting information about each department (b) Treat each department as a profit center?

Q:

Compute return on investment for each of the divisions below (each is an investment center). Comment on the relative performance of each investment center. Net Income Average Assets Return on...

Q:

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a cost of $112,500, and Rory can also receive $60,000 for trading in its...

Q:

Which of the following is true of the Federal Reserve System? it is responsible for regulating the banking system. It is responsible for setting monetary policy. All of the choices are correct It is...

Q:

please answer both parts Section B: Answer ALL Questions. This section carries a total of 50 marks Question 2 (25 marks) (a) A firm recently paid a $0.60 annual dividend. The dividend is expected to...

Q:

A bond offers a coupon rate of 11%, paid annually, and has a maturity of 20 years. The current market yield is 14%. Face value is $1,000. If market conditions remain unchanged, what should be the...

Related Book

Fundamental accounting principle 21st edition by John J. Wild, Ken W. Shaw, Barbara Chiappetta