Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August Actual credit sales for July Estimated collections in August for credit saes in August Estimated collections in August for credit sales in July Estimated collections in August for credit sales prior to July Estimated write-offs in August for uncollectible credit sales Estimated provision for bad debts in August for credit sales in August $ 80, 000 $ 60, 000 25% 70% $ 6,000 $ 4,000 $ 2, 700 Required: What is the estimated amount of cash receipts from accounts receivable collections in August? Estimated cash receipts 2$ 71,000

Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August Actual credit sales for July Estimated collections in August for credit saes in August Estimated collections in August for credit sales in July Estimated collections in August for credit sales prior to July Estimated write-offs in August for uncollectible credit sales Estimated provision for bad debts in August for credit sales in August $ 80, 000 $ 60, 000 25% 70% $ 6,000 $ 4,000 $ 2, 700 Required: What is the estimated amount of cash receipts from accounts receivable collections in August? Estimated cash receipts 2$ 71,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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Budgeted Cash Receipts: Cash Discounts Allowed on Receivables Yeopay PlumbingSupply accepts bank credit cards and offers established plumbers charge accounts with terms of1/eom, n/45. Yeopay’s experience is that 25% of its sales are for cash and bank credit cards. Theremaining 75% are on credit. Of the cash sales, 40% pay cash and the remaining 60% pay with bankcredit cards. Yeopay receives payments from the bank on credit card sales at the end of the day.However, Yeopay has to pay 3% for these services. An aging schedule for accounts receivable showsthe following pattern on credit sales:20% pay in the month of sale.50% pay in the first month following the month of sale.15% pay in the second month following the month of sale.12% pay in the third month following the month of sale.3% are never collected.All accounts not paid by the end of the second month following the month of sale are considered overdue and are subject to a 2% monthly late charge. Yeopay has prepared the following…
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Budgeted Cash Receipts and Cash Disbursements Timpco, a retailer, makes both cash andcredit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter ofthe year is as follows:October November DecemberCash sales $100,000 $ 120,000 $ 80,000Credit sales 100,000 150,000 90,000Total $200,000 $ 270,000 $ 170,000Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month followingthe month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing.Approximately 75% of collectible credit sales take advantage of the cash discount.[LO 10-2, 10-4][LO 10-4][LO 10-4]Final PDF to printerblo17029_ch10_355-410.indd 390 02/19/18 09:08 AM390 Part Two Planning and Decision MakingInventory purchases each month are 100% of the cost of the following month’s projected sales.(The gross profit rate for Timpco is…
Use the information provided below to prepare the following for January and February 2023: 4.2)Cash Budget INFORMATION The following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150…
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Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10] Skip to question [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 86,000 Accounts receivable 138,000 Inventory 75,000 Plant and equipment, net of depreciation 229,000 Total assets $ 528,000 Liabilities and Stockholders’ Equity Accounts payable $ 90,000 Common stock 351,000 Retained earnings 87,000 Total liabilities and stockholders’ equity $ 528,000 Exercise 8-12 (Algo) Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $400,000, $420,000, $410,000, and $430,000,…