Explore BrainMass

Explore BrainMass

    Cash Collections

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose a Gap store has the following data:

    Accounts receivable, May 31: (.3 × May sales of $350,000) = $105,000
    Monthly forecasted sales: June, $410,000; July, $440,000; August, $500,000; September, $530,000. Sales consist of 70% cash and 30% credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored.

    Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:40 pm ad1c9bdddf

    Solution Preview

    June July ...

    Solution Summary

    The solution goes into a great amount of detail about the question being asked. The concepts are very well explained and easy to understand. The solution can be followed very easily by anyone who has some understanding of the concepts beforehand. Overall, an excellent response to the question.