iPad? 1:23 AM I 15% CO WileyPLUSie A WileyPLUS user has reported?possible issue

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iPad? 1:23 AM I 15% CO WileyPLUSie A WileyPLUS user has reported?possible issue with, this question. The WileyPLUS Team currentiy evaluating the reported issue, and wo hope to resolve shortly. You may wish to contact your instructor before submitting arny work for this question and ask you shoud attempt the Your answer is partialy correct. Try again Corradt Connectivity Company manufactures various electrical connector. The company's sales budget for the first six months of the coming on creda. anuary ebruary March une Budgeted sales 540,000 $475,00 5B,000 625,000 560,000 ,000 Conradt is planing to change its credt poloes i, the coming year for the first time in its history, the company is offering a 2% dscount to ?stomers who pay within 15 days of the invoice date. Based on industry trends, Conradt estimates that this change wal result in 50% of credt sales being paid within the discount period; another 15% or sales, withn the month of sale (but outside th ascount period. and another 32% of sales, during the month after the sale. An estimated 3% of sales will be uncollectible. (a) Prepare Conradt's cash receipts budget for the second quarter of the coming year (Enter answers in necessary ields only, Leave ather fields Hank. Do not enter pria April sales Within discount period Outside discount period within discount period Outside discount period June sales wthin discount period Outside discount period Assume that there are no outstanding accounts recevable and allowance for doubtful accounts balances at the beginning of the budgeted ye Net Accounts Recelvable at the end off second quarter o the coming year (b) How much cash will Conract secrifice in the second quarter by offering the new discount? Cash sacrificed by Conract Click if you would lik. to Show work for this question: gpense"work Question Attempts: Unlimited SAVE FOR LATER

Explanation / Answer

SALES BUDGET January February March April May June Total $540,000 $475,000 $580,000 $625,000 $560,000 $600,000 $3,380,000 Collection of April Sales within discount period $306,250 (0.5*625000*0.98) Collection of May Sales within discount period $274,400 (0.5*560000*0.98) Collection of June Sales within discount period $294,000 (0.5*600000*0.98) CASH RECEIPT BUDGET April May June Bad debts March sales $185,600 April sales: Within discount period $306,250 Outside discount period $93,750 $200,000 $18,750 (0.03*625000) May sales: Within discount period $274,400 Outside discount period $84,000 $179,200 $16,800 (0.03*560000) June sales: Within discount period $294,000 Outside discount period $90,000 $18,000 (0.03*600000) TOTAL $585,600 $558,400 $563,200 $53,550 Net Account Receivable at the end of second Quarter: Six months Total BudgetedSales $3,380,000 Bad Debts (3% of 3380000) $101,400 (Assuming that bad debt provisions are not made) Balance Collection for June Sales (0.32*600000) $192,000 Account Receivable at the end of second quarter $293,400 (192000+101400) (b) Amount of cash sacrificed in second quarter: Discount for payment within 15 days $17,850 (0.02*0.5*(625000+560000+600000) Amount sacrificed for offering new discount $17,850 Total bad debts during the quarter $53,550

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