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slava [35]
3 years ago
9

Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000

in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?
Business
1 answer:
Tcecarenko [31]3 years ago
6 0

Answer:

The correct answer is $33,000.

Explanation:

According to the scenario, the given data are as follows:

Jan sales = $30,000

So, Amount collected in March of Jan. = 40% x $30,000 = $12,000

Feb sales = $35,000

So, Amount collected in March of Feb. = 40% x $35,000 = $14,000

Mar. sales = $35,000

So, March cash sales = 20% x $35,000 = $7,000

So, we can calculate the total cash receipts in march by using following formula:

Total cash receipts in march = Amount collected in March of Jan + Amount collected in March of Feb + March cash sales

= $12,000 + $14,000+ $7,000

= $33,000

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On September 1, Kennedy Company loaned $100,000, at 12% annual interest, to a customer. Interest and principal will be collected
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Journal entry to record accrued interest at Year end for loan issued on sept 1st.

Date         Account titles                   Debit         Credit

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in the U.S. cash takes which forms? bills and coins /bonds and treasuries /dollars and Euros/reserves and treasuries
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At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, previously wr
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Answer:

Given:

Allowance for Doubtful Accounts is a credit of $760

Written off accounts = $120

Accounts totaling = $740

The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts will be computed as:

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<em>⇒ $140</em>

<u><em /></u>

<u><em>therefore, the correct option is (c).</em></u>

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