Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Schedule of Cash Collections Total collections 1 2 Quarters 3 4
Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Schedule of Cash Collections Total collections 1 2 Quarters 3 4
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EA: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning...
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Explanation -
Budgeting -
Budgeting is the process of estimating future operations based on past performance. % are estimated and collections are estimated based on past performance.
Budgeting helps to control the operations from getting excess over its budgeted figures.
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