The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash sales, 50% of credit sales collected in the month following sale, and the remaining 15% credit sales written off as uncollectible. Prepare a schedule of cash receipts for September.

Question

Business

Romeo Solomon

24 December, 23:59

The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash sales, 50% of credit sales collected in the month following sale, and the remaining 15% credit sales written off as uncollectible. Prepare a schedule of cash receipts for September.

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Araceli Jimenez · Answer 1

Total = $145,500

Explanation:

Giving the following information:

The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash sales, 50% of credit sales collected in the month following sale, and the remaining 15% credit sales written off as uncollectible.

Cash collection:

From August = (130,000*0.50) = 65,000

September = (230,000*0.35) = 80,500

Total = 145,500