Business, 20.08.2020 01:01 mrtroll9145

The LaPann Corporation has obtained the following sales forecast data: July August September October Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000 Credit sales $ 240,000 $ 220,000 180,000 200,000The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the following the month of sale and the remainder in the second month following the month of sale. There are no bad debts. Required:1. The budgeted accounts receivable balance on September 30 is:A) $126,000B) $148,000C) $166,000D) $190,0002. The budgeted cash receipts for October are:A) $188,000B) $248,000C) $226,000D) $278,000

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Answer from: chantelporter713

1. 166,000

2. 188,000

Explanation:

The budgeted accounts receivable balance on September 30 and Budgeted cash receipts for october n be calculated as follows

July

Opening -

Credit sales 240,000

Collection

20% of July 48,000

Closing 192,000

August

Opening 192,000

Credit sales 220,000

Total 412,000

Collection

20% of August 44,000

70% of July 168,000

Total receipts 208,000

Closing 200,000

September

Opening 200,000

Credit sales 180,000

Total 380,000

Collection

20% of september 36,000

70% of august 154,000

10% of july 24,000

Total receipts 214,000

Closing 166,000

October

Opening 166,000

Credit sales 200,000

Total 366,000

Collection

20% of October 40,000

70% of september 126,000

10% of august 22,000

Total receipt 188,000

Closing 178,000

Answer from: Quest

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

Answer from: Quest

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The LaPann Corporation has obtained the following sales forecast data: July August September October...

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