The Guitar Shoppe reports the following sales forecast: August, $150,000; September, $170,000. Cash sales are normally 30% of total sales, 55% are credit sales collected in the month following the sale, and the remaining 15% are credit sales that are written off as uncollectible. Prepare a schedule of cash receipts for September.

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Business

Amira

24 June, 04:22

The Guitar Shoppe reports the following sales forecast: August, $150,000; September, $170,000. Cash sales are normally 30% of total sales, 55% are credit sales collected in the month following the sale, and the remaining 15% are credit sales that are written off as uncollectible. Prepare a schedule of cash receipts for September.

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Lozano · Answer 1

Thus Calculation of September Cash Receipts is as follows:

September Sales ($170,000 * 30%) = $51,000

August Sales ($150,000 * 55%) = $82,500

Total = $133,500

Explanation:

September cash receipts will include the following:

30% of September Sales 55% of August Sales

Thus Calculation of September Cash Receipts is as follows:

September Sales ($170,000 * 30%) = $51,000

August Sales ($150,000 * 55%) = $82,500

Total = $133,500