Davis Company has forecast its sales as follows: August$180,000(actual)September$280,000(actual)October$360,000 November$400,000 December$450,000 Davis has experienced collections of 40% during the month of sale, 50% the month after the sale, and 10% the second month after the sale.Required:a. Prepare a schedule of cash receipts for the 3-month period October - December.b. What will the Accounts Receivable balance be on December 31?
What will be an ideal response?
a.
b. November: $400,000 × 10% = $40,000; December: $450,000 × 60% = $270,000; Total AR = $40,000 + $270,000 = $310,000.
You might also like to view...
Consider the following SQL query. Which item best describes the results of the query?SELECT VendorID, Sum(POTotal)FROM [Purchase Orders]GROUP BY VendorID
A. Adds new purchase order information to the purchase orders table. B. Displays all purchase order lines for all vendors. C. Displays the vendor ID and the sum of all purchase order totals for that vendor. D. Displays the vendor ID and all purchase order totals in the purchase orders table.
Although Brenda previously used the US Postal Service because it offered better prices on package shipping, she now uses only FedEx, because it gives her the facility of shipping from any FedEx location 24 hours a day
Which of the following factors led to Brenda's customer switching behavior? A) inconvenience B) pricing C) response to service failure D) ethical problems E) involuntary switching
Large, representative samples are used to collect data that are analyzed with statistical techniques for which of the following types of research designs?
A) subjective research B) exploratory research C) conclusive research D) observational research E) supporting research
When an owner invests assets in the business, the capital account increases due to revenue being earned
Indicate whether the statement is true or false