Answers to Practice Problems for Chapter 9(2)

# Answers to Practice Problems for Chapter 9(2) - The...

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The University of Texas at Austin McCombs School of Business, Business Foundations Program ACC 310F: Foundations of Accounting Answers to Practice Problems for Chapter 9 1. Jackson Furniture Company Page 1

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2. Henson Incorporated a. July August September Expected sales in units ……… 16,000 12,000 13,000 Selling price per unit………… \$32 \$32 \$32 Total sales ……………… …… \$512,000 \$384,000 \$416,000 b. Cash collections from: July August September June sales………… …………. \$216,320 a July sales………… …………. 225,280 \$266,240 August sales………… ………. 168,960 \$199,680 Page 2
September sales………… …… 183,040 Total cash collections ……… \$441,600 \$435,200 \$382,720 (1) Sales from May and all prior months would have been fully collected (or written off) by the end of June. Thus, the \$216,320 net realizable value of accounts receivable represents the 52% of June sales that will be collected in July (13,000 units sold in June * \$32 * 52% = \$216,320). c.

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Answers to Practice Problems for Chapter 9(2) - The...

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