A wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at...
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Accounting
A wholesaler of industrial goods. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $360,000 for December, and $340,000 for January. Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible. The cost of goods sold is 75% of sales. The company desires an ending merchandise inventory equal to 40% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $70,000. The November beginning balance in the accounts payable account is $257.000. * Required: A. Prepare a Schedule of Expected Cash Collections for November and December.(7.5 marks)
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