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 find the cash sales for August.

Cash sales for August = $15,000 x 1.20 = $18,000

Cash sales for September = Cash sales for August x 1.20 = $18,000 x 1.20 = $21,600

To calculate the budgeted credit sales for September, we need to first find the credit sales for August.

Credit sales for August = $6,000 x 0.90 = $5,400

Credit sales for September = Credit sales for August x 0.90 = $5,400 x 0.90 = $4,860

Therefore, the budgeted cash sales for September are $21,600 and the budgeted credit sales for September are $4,860, making option C the correct answer.

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