Budgeted sales and cash collections for Cherry Corporation for Quarter 1 are listed below: Cash...
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Accounting
Budgeted sales and cash collections for Cherry Corporation for Quarter 1 are listed below:
Cash Sales
Credit Sales
Total Sales
January
$125,000
$400,000
$525,000
February
$100,000
$260,000
$360,000
March
$85,000
$195,000
$280,000
The company is in the process of preparing a cash budget and must determine the expected cash collections.
Collections on credit sales:
Month of sale 60%
Month after sale 30%
2nd month after sale 10%
The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales
11. The total cash collected in March would be:
A.$328,500
B.$178,500
C.$235,000
D.$320,000
E.None of the above
12. The accounting receivable balance as of the end of January would be:
A.$331,500
B.$178,750
C.$210,000
D.$240,000
E.None of the above
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