Stiller Company expects cash sales for July of $15,000,and a 20% monthly increase during August and September.Credit sales of $10,000 in July should be followed by 25% increases during August and September.What are budgeted cash sales and budgeted credit sales for September respectively?

Question

Quizplus · Accepted Answer

To calculate budgeted cash sales for September, we first need to determine the increase in sales from August to September.

August cash sales = $15,000 x 1.20 = $18,000

September cash sales = $18,000 x 1.20 = $21,600

To calculate budgeted credit sales for September, we first need to determine the increase in sales from August to September.

August credit sales = $10,000 x 1.25 = $12,500

September credit sales = $12,500 x 1.25 = $15,625

Therefore, the budgeted cash sales and budgeted credit sales for September are $21,600 and $15,625, respectively.

Option B is the correct answer.

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