Crane Company has the following sales data: August September October November December Cash Sales $4000 $5000 $6000 $7000 $16000 Sales on Account $50000 $59,001 $65000 $74,490 $100000 Crane Company's credit customers have the following payment history: 40% in month of sale 57% in month following sale the rest are never collected What are budgeted cash receipts for September?

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tanveermoledina tanveermoledina · Answer 1 · 2020-04-08T06:04:24+02:00

Answer:

Collections for September is $ 57,100

Explanation:

Computation of cash receipts for September

Collections from cash sales of September $ 5,000

Collections from credit sales of August - 57 % of $ 50,000 $ 28,500

Collections from credit sales of September 40 % of $ 59,001 $ 23,600

Total collections for September $ 57,100

Tundexi Tundexi · Answer 2 · 2022-04-08T09:28:16+02:00

The budgeted cash receipts for the month of September equals $57,100.

Particulars Amount

Collections from cash sales of September $5,000

Collections from credit sales of August $28,500 (57%*$50,000)

Collections from credit sales of September $23,600 (40% * $59,001)

Total collections for September $57,100

In conclusion, the budgeted cash receipts for the month of September equals $57,100.