Question

The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash sales, 50% of credit sales collected in the month following sale, and the remaining 15% credit sales written off as uncollectible. Prepare a schedule of cash receipts for September.

Answer 1

Answer:

Total= $145,500

Explanation:

Giving the following information:

The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash sales, 50% of credit sales collected in the month following sale, and the remaining 15% credit sales written off as uncollectible.

Cash collection:

From August= (130,000*0.50)= 65,000

September= (230,000*0.35)= 80,500

Total= 145,500