Chapt 9 Quiz - November are forecasted at $165,000. Cash...

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Accounting 2102 Spring 2008 Farmer Quiz 6 . . . Chapter 9 name myid signature and date Please circle your final answers. (you must show your work to receive credit) The following information is from White Mountain Furniture Company’s financial records: Month Sales Purchases July $180,00 0 $105,000 August $165,00 0 $120,000 September $150,00 0 $90,000 October $195,00 0 $135,000 Collections from customers are normally 70% in the month of sale, 20% in the month following the sale, and 9% in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2% purchase discount allowed on purchases paid by the 10th of the following month. Purchases for November are budgeted at $150,000 and sales for
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Unformatted text preview: November are forecasted at $165,000. Cash disbursements for expenses are expected to be $36,000 for the month of November. The companys cash balance on November 1 st was $55,000. Determine the following: 1. Expected cash collections during November. Nov mt sale 70% 165,00 0 115,50 0 Oct 1st 20% 195,00 0 39,00 0 Sept 2nd 9% 150,00 0 13,50 0 168,00 0 738adfd35d65b0dbc9a2562444b02d05963d99d6.doc Accounting 2102 Spring 2008 Farmer Quiz 6 . . . Chapter 9 2. Expected cash disbursements during November. Oct purchases 98% 135,00 0 132,30 0 other 36,00 0 168,30 0 3. Expected cash balance on November 30 th . Beg 55,000 Collections 168,000 Disbursements (168,300 ) End 54,700 738adfd35d65b0dbc9a2562444b02d05963d99d6.doc...
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This note was uploaded on 05/08/2008 for the course ACCT 2102 taught by Professor Farmer during the Spring '08 term at University of Georgia Athens.

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Chapt 9 Quiz - November are forecasted at $165,000. Cash...

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