question archive Frankie's Chocolate Co
Frankie's Chocolate Co
Subject:AccountingPrice:4.89 Bought3
Frankie's Chocolate Co. reports the following information from its sales budget:
Expected Sales:July$90,000 August 110,000 September 120,000
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
In July, you will collect 25% of July's sales=0.25 x 90,000= $22,500
In August, you will collect 75% of July's sales plus 25% of August's sales= (0.75 x 90,000) + (0.25 x 110,000)= 67,500+27,500= $95,000
In September, you will collect 75% of August's sales plus 25% of September's sales= (0.75 x 110,000) + (0.25 x 120,000)= $112,500.
