PLEASE BE SURE TO PROVIDE ACCURATE AND COMPLETE ANSWER PLEASE BE SURE TO PROVIDE

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PLEASE BE SURE TO PROVIDE ACCURATE AND COMPLETE ANSWER

PLEASE BE SURE TO PROVIDE ACCURATE AND COMPLETE ANSWER

Goldberg Company is a retail sporting goods store that uses an accrual accounting system. Facts regarding its operations follow Sales are budgeted at $160,000 for December and $130,000 for January, terms 1leom, n/60 Collections are expected to be 50% in the month of sale and 48% in the month following the sale. Two percent of sales are expected to be uncollectible and recorded in an allowance account at the end of the month of sales. Bad debts expense is included as part of operating expense:s Gross margin is 30% of sales All accounts receivable are from credit sales. Bad debts are written off against the allowance account at the end of the month following the month of sale Goldberg desires to have 80% of the merchandise for the following month's sales on hand at the end of each month. Payment for merchandise is made in the month following the month of purchase Other monthly operating expenses to be paid in cash total $12,800 Annual depreciation is $126,000, one-twelfth of which is reflected as part of monthly operating expenses . Goldberg Company's statement of financial position at the close of business on November 30 follows GOLDBERG COMPANY Statement of Financial Position November 30, 2016 Assets Accounts receivable (net of $4,000 allowance for doubtful accounts) Inventory Property, plant, and equipment (net of $510,000 accumulated depreciation) $11,000 42,000 89,600 890,000 Total assets $1,032,600 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 131,000 800,000 101,600 Total liabilities and equity $1,032,600 Required 1. What is the total of budgeted cash collections for December? (Do not round intermediate calculations.) Budgeted cash collections-December

Explanation / Answer

1. BUDGETED CASH COLLECTIONS FOR THE MONTH OF DECEMBER IS=80000-2300-77700

50% OF SALES- 160000*50%=80000

MONTHLY OPERATING EXPENSES= 12800-1/12 OF 126000=2300

2 CASH SALES= 50%0F TOTAL SALES = 80000

BAD DEBTS= 2% OF TOTAL SALES=3200

ACCOUNTS RECEIVABLES=160000-80000-3200-76800

3. GROSS PROFIT IS 30% OF SALES=48000

OPERATING EXPENSES=12800

NET PROFIT=48000-12800=35200

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