J.TOY Inc., was organized on August 1 of the current year. Projected sales for the next three months are as follows: -August : $120,000 -September : $200,000 -October : $230,000 The J.TOY expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating total cash collections for August, September, and October.

J.TOY Inc., was organized on August 1 of the current year. Projected sales for the next three months are as follows: -August : $120,000 -September : $200,000 -October : $230,000 The J.TOY expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating total cash collections for August, September, and October.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EA: Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale,...

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