The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: i) Month August September October November December Cash Sales $85,000 $70,000 $88,550 $77,160 $174,870 Sales On Account $640,000 $550,000 $600,000 $800,000 $500,000 Purchases $420,000 $550,000 $500,000 $600,000 $450,000 An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale
The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: i) Month August September October November December Cash Sales $85,000 $70,000 $88,550 $77,160 $174,870 Sales On Account $640,000 $550,000 $600,000 $800,000 $500,000 Purchases $420,000 $550,000 $500,000 $600,000 $450,000 An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale
The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: i) Month August September October November December Cash Sales $85,000 $70,000 $88,550 $77,160 $174,870 Sales On Account $640,000 $550,000 $600,000 $800,000 $500,000 Purchases $420,000 $550,000 $500,000 $600,000 $450,000 An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale
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