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Home / Questions / Wexler Company expects sales of $40000 in July $50 000 in August and $30000 in September W...

Wexler Company expects sales of $40000 in July $50 000 in August and $30000 in September Wexler’s experience is that

Wexler Company expects sales of $40,000 in July, $50,000 in August, and $30,000 in September. Wexler’s experience is that 40% of sales are cash, and the remainder are on account. Accounts receivable are paid: 70% in the month of sale, and 25% in the following month.

 

A.What are the expected cash receipts on accounts receivable in August for July sales?

B.What are the expected cash receipts on accounts receivable in August for August sales?

C.What are the total expected cash receipts on accounts receivable in August?

D.What are the total expected cash receipts in August?

E.How much of July sales are deemed to be uncollectible?

 

 

 

 

21.Shorter Company developed the following data for the month of June.

 

1.June 1 cash balance $2,300.

2.Cash sales in June $67,000.

3.Credit sales for June are $20,000; for May $10,000; and for April $16,000. 60% of credit sales are collected in the month of sale, 20% in the following month, and 10% in the second month following the sale.

4.Purchases for May were $34,000 and for June are $40,000. Half of purchases are paid in the month of purchase and the remainder in the following month.

5.June salaries are $28,400, utilities are $1,090, and depreciation on the building is $1,000.

 

A.Anticipated cash receipts from accounts receivable in June equal $__________________.

B.Anticipated total cash available in June is $__________________.

C.June cash payments for purchases are $__________________.

D.Anticipated cash balance on June 30 is $__________________.

 

Mar 13 2020 View more View Less

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