Rong Company expects cash sales for July of $15,000, and a 20% monthly increase during August and September. Credit sales of $6,000 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

To calculate the budgeted cash sales for September, we need to first calculate the cash sales for August: $15,000 x 1.2 = $18,000. Then, we can calculate the cash sales for September: $18,000 x 1.2 = $21,600. 
To calculate the budgeted credit sales for September, we need to first calculate the credit sales for August: $6,000 x 0.9 = $5,400. Then, we can calculate the credit sales for September: $5,400 x 0.9 = $4,860. Therefore, the answer is (C) $21,600 and $4,860.

Rong Company Expects Cash Sales for July of $15,000, and a 20