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Frank's Sporting Goods projected sales of $100,000 in April, $120,000 in May, and $110,000 in June. 10% of sales are for cash, 70% of accounts receivable are collected the following month, and the remaining 30% are collected in two months. The balance of accounts receivable at the end of June was $131,400.

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Abegiel Mendoza
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196 views

Finman Groupwork PDF Free

Frank's Sporting Goods projected sales of $100,000 in April, $120,000 in May, and $110,000 in June. 10% of sales are for cash, 70% of accounts receivable are collected the following month, and the remaining 30% are collected in two months. The balance of accounts receivable at the end of June was $131,400.

Uploaded by

Abegiel Mendoza
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Frank’s Sporting Goods projects sales for the second quarter of 20x4 of P100,000 for April, P120,000 for

May and P110,000 for


Ten percent of Frank’s sakes are for cash, seventy percent of accounts receivable are collected one month following the sale,

a. Prepare a monthly schedule of cash receipts for the second quarter of 20x4. 
b. What is the balance of accounts receivable at the end of June? 

JANUARY 40000
FEBRUARY 60000
MARCH 80000
APRIL 100000
MAY 120000
JUNE 110000

Requirement A
April May June
Cash Sales 10% 10000 12000 11000
Collection of sale in prior month 70% 50400 63000 75600
Collection of sales in two months prior 30% 16200 21600 27000
Total cash collections 76600 96600 113600

Requirement B
Uncollected Sales in February 16200
Uncollected Sales in March 72000
Accounts Receivable April 1, 20x4 88200
Sales of the quarter 330000
Collections for the quarter ( 286800 )
Accounts Receivable June 30, 20x4 131400
000 for May and P110,000 for June.
one month following the sale, and the rest are collected two months following the sale. January sales were P40,000. February sales were

COLLECTION OF SALE IN PRIOR MONTH


In order to compute the collection of sale of April we will use the month of March as a guide.
March= 80000 80,000 72,000
x 10% - 8000 x 70%
8000 72,000 50400

In order to compute the collection of sale of May we will use the month of April as a guide.
April= 100,000 90,000
- 10000 x 70%
90,000 63000

In order to compute the collection of sale of June we will use the month of May as a guide.
May= 120,000 108000
- 12000 x 70%
108,000 75600

COLLECTION OF SALES IN TWO MONTHS PRIOR


In order to compute the collection of sale of April we will use the month of February as a guide.
February= 60000 60000 54000
x 10% - 6000 x 30%
6000 54000 16200

In order to compute the collection of sale of May we will use the month of March as a guide.
March= 80000 80000 72000
x 10% - 8000 x 30%
8000 72000 21600

In order to compute the collection of sale of June we will use the month of April as a guide.
April= 100000 100000 90000
x 10% - 10000 x 30%
10000 90000 27000
0,000. February sales were P60,000, and March sales were P80,000. 

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