Author Question: Duffy Corporation has prepared the following sales budget: Month Cash Sales Credit Sales May ... (Read 285 times)

jessicacav · **on:** Jul 5, 2018

Duffy Corporation has prepared the following sales budget:

Month Cash Sales Credit Sales
May 16,000 68,000
June 20,000 80,000
July 18,000 74,000
August 24,000 92,000
September 22,000 76,000

Collections are 40 in the month of sale, 45 in the month following the sale, and 10 two months following the sale. The remaining 5 is expected to be uncollectible.

Required:
Prepare a schedule of cash collections for July through September.

Question 2

Sales of office supplies for cash, at cost, to a neighboring business as an accommodation are recorded in therevenue journal.
a. True
b. False

Indicate whether the statement is true or false

asware1 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

Answer: July August September Total
Cash sales 18,000 24,000 22,000 64,000

Collections of credit sales from:
Current month 29,600 36,800 30,400 96,800
Previous month 36,000 33,300 41,400 110,700
Two months ago 6,800 8,000 7,400 22,200
Total collections 90,400 102,100 101,200 293,700

Answer to Question 2

False