On February 15 you received a report containing the actual Sales data for Yabsle

Question

On February 15 you received a report containing the actual Sales data for Yabsley Corporation for the month of January, and forecasted Sales data for the current month and the next 4 months see below. Half of Yabsley Corporation sales are on account, and the collection schedule is 70% in the month of sale and 30% the following month. They do not expect any amounts to be uncollectible. (You must show all your work to earn marks) June anuaryFebuary March $240,000 $100,000 $140,000 $120,000$180,000 $200,000 April May Required 1) The owner of Yabsley Corporation wants you to prepare a schedule of expected Cash Receipts/Collections for the current month (February) and each of the next 4 months and a total column for the cash collected over the 5-month period as at June 30. 2) What is the ending Acc/Receivable balance on June 30

Explanation / Answer

Jan Feb March April May June Cash sale 120,000 50,000 70,000 60,000 90,000 100,000 credit sale 120,000 50,000 70,000 60,000 90,000 100,000 total sale 240,000 100,000 140,000 120,000 180,000 200,000 1) Schedule of expected cash collection Feb March April May June total Cash collection 50,000 70,000 60,000 90,000 100,000 370,000 Credit collection Jan (120000*30%) 36,000 36,000 Feb (50000*70%;30%) 35,000 15,000 50,000 March (70000;70%;30%) 49,000 21,000 70000 April (60,000*70%;30%) 42,000 18,000 60,000 May (90,000*70%;30%) 63,000 27,000 90,000 June (100,000*70%) 70,000 70,000 total cash collection 121,000 134,000 123,000 171,000 197,000 746,000 2) Ending Account receivable 100,000*30% = $30,000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.