The following are forecasts of sales and purchases for Savannah Company:

Sales Purchases

April $80,000 $30,000

May 90,000 40,000

June 85,000 30,000

All sales are on credit.Records show that 70 percent of the customers pay the month of the sale,20 percent pay the month after the sale,and the remaining 10 percent pay the second month after the sale.Purchases are all paid the following month at a 2 percent discount.Cash disbursements for operating expenses in June were $5,000. Required: Prepare a schedule of cash receipts and disbursements for June. Schedules of Cash Receipts and Disbursements for June

Question

The following are forecasts of sales and purchases for Savannah Company:

	Sales	Purchases
April	$80,000	$30,000
May	90,000	40,000
June	85,000	30,000

All sales are on credit.Records show that 70 percent of the customers pay the month of the sale,20 percent pay the month after the sale,and the remaining 10 percent pay the second month after the sale.Purchases are all paid the following month at a 2 percent discount.Cash disbursements for operating expenses in June were $5,000. Required: Prepare a schedule of cash receipts and disbursements for June. Schedules of Cash Receipts and Disbursements for June

Quizplus · Accepted Answer

The Answer of The following are forecasts of sales and purchases for Savannah Company:

	Sales	Purchases
April	$80,000	$30,000
May	90,000	40,000
June	85,000	30,000

All sales are on credit.Records show that 70 percent of the customers pay the month of the sale,20 percent pay the month after the sale,and the remaining 10 percent pay the second month after the sale.Purchases are all paid the following month at a 2 percent discount.Cash disbursements for operating expenses in June were $5,000. Required: Prepare a schedule of cash receipts and disbursements for June. Schedules of Cash Receipts and Disbursements for June

The Following Are Forecasts of Sales and Purchases for Savannah