Wright Company expects cash sales for July of $12,000, and a 20% monthly increase during August and September. Credit sales of $4,000 in July should be followed by 10% decreases during August and September. What are budgeted cash sales and budgeted credit sales for September?

Question

Quizplus · Accepted Answer

Cash sales for September = July cash sales * (1 + 20%)^2 = $12,000 * 1.2^2 = $17,280. Credit sales for September = July credit sales * (1 - 10%)^2 = $4,000 * 0.9^2 = $3,240.

Wright Company Expects Cash Sales for July of $12,000, and a 20