Chapter 09 Inclass quiz_SOLN

Chapter 09 Inclass - 500 units December-900 units How much cash will be collected in the month of December Answer $7,200 Cash collected in December

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Acc 200P Name: ________________________ Lab Section #_________________ Chapter 9 SOLUTION Smith Products sells widgets. The price of each widget is $10. ¼ of the sales each month are for cash with the remainder on account. With respect to sales on account , Smith collects 40% in the month of sale and the remaining 60% in the following month. Budgeted sales (in units) for the last two months of 2013 are as follows: November ----------------
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Unformatted text preview: 500 units December -----------------900 units How much cash will be collected in the month of December ? Answer: __ $7,200 _____ Cash collected in December from December Sales: December Cash Sales (900 x $10 x ¼) $ 2,250 December Account Sales (900 x $10 x ¾ x 40%) 2,700 Cash collected in December from November Sales: November Account Sales (500 x $10 x ¾ x 60%) 2,250 Total Cash Collected In December $ 7,200...
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This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.

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