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Chapter 20: 20-19QS (page 915)

Music World reports the following sales forecast: August, \(150,000; and September, \)170,000. Cash sales are normally 40% of total sales and all credit sales are expected to be collected in the month following the date of sale. Prepare a schedule of cash receipts for September.

Short Answer

Expert verified

The total budgeted cash receipts for the month of September will be $128,000.

Step by step solution

01

Given the information as

The total sales for the month of August are $150,000

The total sales for the month of September are $170,000

Cash sales are 40% of the total sales.

02

Preparation of a schedule of cash receipts for the month of September

Music World
Schedule of cash receipts
For the month of September
Particulars	Amount
Cash sales for September	$68,000
Add: Collection of accounts receivables	$60,000
Total budgeted cash receipts	$128,000

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Most popular questions from this chapter

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