Graham Potato Company has projected sales of $16,200 in September, $18,500 in October, $26,200 in November, and $22,200 in December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $22,000 and $14,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts Graham Potato Company Cash Receipts Schedule September October November $ $ 19,650 December $ 6,550 $ 6,550 $ 22,200 16,650 5,550 5,550
Graham Potato Company has projected sales of $16,200 in September, $18,500 in October, $26,200 in November, and $22,200 in December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $22,000 and $14,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts Graham Potato Company Cash Receipts Schedule September October November $ $ 19,650 December $ 6,550 $ 6,550 $ 22,200 16,650 5,550 5,550
Excel Applications for Accounting Principles
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ISBN:9781111581565
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Chapter22: Master Budget (master)
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![Graham Potato Company has projected sales of $16,200 in September, $18,500 in October, $26,200 in November, and $22,200 in
December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40
percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after.
Determine collections for November and December.
Also assume Graham's cash payments for November and December are $22,000 and $14,500, respectively. The beginning cash
balance in November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Total cash receipts
Graham Potato Company
Cash Receipts Schedule
September October
November
$
$
December
6,550
$
19,650
6,550 $
$
22,200
16,650
5,550
5,550](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa662a3f1-1f7b-4926-ba06-94d0e6e94529%2F3a0265b9-8c82-4a97-95c3-eb7bc7889aed%2Fxjrjwd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Graham Potato Company has projected sales of $16,200 in September, $18,500 in October, $26,200 in November, and $22,200 in
December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40
percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after.
Determine collections for November and December.
Also assume Graham's cash payments for November and December are $22,000 and $14,500, respectively. The beginning cash
balance in November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Total cash receipts
Graham Potato Company
Cash Receipts Schedule
September October
November
$
$
December
6,550
$
19,650
6,550 $
$
22,200
16,650
5,550
5,550
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