Question

Crane Company has the following sales data: August September October November December Cash Sales $4000 $5000 $6000 $7000 $16000 Sales on Account $50000 $59,001 $65000 $74,490 $100000 Crane Company's credit customers have the following payment history: 40% in month of sale 57% in month following sale the rest are never collected What are budgeted cash receipts for September?

Answer 1

Answer:

Collections for September is $ 57,100

Explanation:

Computation of cash receipts for September

Collections from cash sales of September                                       $   5,000

Collections from credit sales of August - 57 % of $ 50,000           $  28,500

Collections from credit sales of September 40 % of $ 59,001       $  23,600  

Total collections for September                                                        $  57,100