1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ivanshal [37]
3 years ago
15

The Model Company is to begin operations in April. It has budgeted April sales of $30,000, May sales of $34,000, June sales of $

40,000, July sales of $42,000, and August sales of $38,000. Note that 10% of each month's sales is expected to represent cash sales; 75% of the balance is expected to be collected in the month following the sale, 17% the second month, 6% the third month, and the balance is expected to be uncollectible. What is the amount of cash to be collected in the month of July?
Business
2 answers:
pashok25 [27]3 years ago
8 0

Answer:

$38,022

Explanation:

Given that the cash collection model is such that 10% of each month's sales is expected to represent cash sales; 75% of the balance is expected to be collected in the month following the sale, 17% the second month, 6% the third month, and the balance is expected to be uncollectible, it means that collection for July would include;

  • 10% sales in July
  • 75% of 90% of sales in June
  • 17% of 90% of sales in May
  • 6% of 90% of sales in April

Hence, if It has budgeted April sales of $30,000, May sales of $34,000, June sales of $40,000, July sales of $42,000,

Cash collected in July

= 10% * $42,000 + 75% of 90% * $40,000 + 17% * 90% * $34,000 + 6% * 90% * $30,000

= $4,200 + $27,000 + $5,202  + $1,620

= $38,022

adoni [48]3 years ago
5 0

Answer:

$36,906

Explanation:

The file attached shows a table that explains very well the solution to the problem.

Download docx
You might be interested in
A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessio
JulijaS [17]

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

8 0
3 years ago
Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 p
Helga [31]

Answer:

7%

Explanation:

nominal interest rate = real interest rate + expected inflation rate

nominal interest rate = 5% + 2% = 7%

Usually the nominal interest rate has four major components:

  1. real interest rate: the net interest rate received by a lender or an investor
  2. inflation rate: the general rise in the prices of goods and services, as inflation increases, the purchasing power of a currency decreases
  3. liquidity risk premium: usually collateralized loans include a liquidity risk premium since not all assets can be easily converted to cash.
  4. credit risk: possibility of the borrower defaulting the loan

7 0
3 years ago
N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resol
erma4kov [3.2K]

Answer:

Credit Treasury Stock $20,000

Explanation:

When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i.e. in this case we acquire the treasury stock at a price of $20.

Cash (1,000 * 12)                                    12,000

Additional Paid in Capital                        8,000

                         Treasury Stock (1,000 * 20)               20,000

6 0
3 years ago
If a consultant is not a consultee's administrative supervisor, the consultant: Question 7 options: can avoid liability for any
ASHA 777 [7]

Since the consultant is not a consultee's administrative supervisor , then he would not be held legally responsible for actions taken by the consultee based on the consultant's advice.

A consulting agreement is a legal document that describes the working relationship between a company and a consultant who provides services to that company. The consulting agreement defines the terms of the professional relationship in order to hold both parties accountable for the type of work and compensation expected.

A consultant is a third-party professional who provides expertise and advice to help a company's operations in some way. They examine current business practices, identify areas for improvement, and devise a strategy to improve that aspect of the business.

Learn more about agreement here:

brainly.com/question/15319879

#SPJ4

8 0
2 years ago
During 2021, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2021, cash
Softa [21]

Answer:

  • 1. Record the adjusting entry for uncollectible accounts on December 31, 2021.

Dr Bad Debt Expense $ 13.800  

Cr Allowance for Uncollectible Accounts  $ 13.800

  • 2-a. Record the write-off of accounts receivable in 2022.

Dr Allowance for Uncollectible Accounts $ 12.420  

Cr Accounts Receivable   $ 12.420

  • 2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022

Final Balance 2022  

Cr Allowance for Uncollectible Accounts  $ 1.380

  • 3-a. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Record the write-off of accounts receivable in 2022.

Dr Allowance for Uncollectible Accounts $ 18.630  

Cr Accounts Receivable   $ 18.630

  • 3-b. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022

Final Balance 2022  

Cr Allowance for Uncollectible Accounts  $ 7.176

Explanation:

Initial Balance  

Dr Accounts Receivable   $ 152.000

Cash collections on these accounts total $106,000  

Dr CASH $ 106.000  

Cr Accounts Receivable   $ 106.000

New Balance

Dr Accounts Receivable   $ 46.000

Pave estimates that 30% of the uncollected accounts will be uncollectible.  

Dr Bad Debt Expense $ 13.800  

Cr Allowance for Uncollectible Accounts  $ 13.800

 

FINAL BALANCE 2021  

Dr Accounts Receivable   $ 46.000

Cr Allowance for Uncollectible Accounts  $ 13.800

In 2022, the company writes off uncollectible accounts of $12,420  

Dr Allowance for Uncollectible Accounts $ 12.420  

Cr Accounts Receivable   $ 12.420

Final Balance 2022  

Dr Accounts Receivable  $ 33.580  

Cr Allowance for Uncollectible Accounts  $ 1.380

2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022    

Dr Bad Debt Expense $ 10.074  

Cr Allowance for Uncollectible Accounts  $ 10.074

a. Assume the same facts as above but assume actual write-offs in 2022 were $18,630.    

Record the write-off of accounts receivable in 2022.  

Dr Allowance for Uncollectible Accounts $ 18.630  

Cr Accounts Receivable   $ 18.630

3-b. Assume the same facts as above but assume actual write-offs in 2022 were $18,630.  

Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022  

Final Balance 2022  

Dr Accounts Receivable  $ 14.950  

Cr Allowance for Uncollectible Accounts  $ 7.176

6 0
3 years ago
Other questions:
  • A financial asset is liquid: Group of answer choices if it can be readily exchanged for another asset or good. if it is held by
    10·1 answer
  • A house sold for $950,000 with a sales commission rate of 7.5%. The listing brokerage received 50% of the total commission and t
    14·1 answer
  • Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider
    6·1 answer
  • 3. Why does the infant mortality rate relate to a country's level of development?
    6·2 answers
  • Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? a. gross
    7·1 answer
  • A person has a comparative advantage in activity X when that person's: O opportunity cost of performing that activity is very hi
    14·1 answer
  • Which of the following terms best describes the cumulative value of net income or loss not taken out of the business?
    10·1 answer
  • If you were applying for an upper-level management job at Pizza Hut in the Public Relations and Social Media department, working
    10·1 answer
  • 2. A small business makes cakes for parties and weddings. Which two of the following are most likely to be resources it uses dir
    8·1 answer
  • 1) The defect rate for your product has historically been about 2.00%. For a sample size of 300, the upper and lower 3-sigma con
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!