The following information pertains to Amigo Corporation:
Cash is collected from customers in the following manner:
* Customers paying in the month of sale receive a 2% cash discount.
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required:
a. Prepare a summary of cash collections for the 4th quarter.
b. Prepare a summary of cash disbursements for the 4th quarter.

Question

The following information pertains to Amigo Corporation:
  Cash is collected from customers in the following manner:
  * Customers paying in the month of sale receive a 2% cash discount.
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required:
a. Prepare a summary of cash collections for the 4th quarter.
b. Prepare a summary of cash disbursements for the 4th quarter.

Quizplus · Accepted Answer

The Answer of The following information pertains to Amigo Corporation:
  Cash is collected from customers in the following manner:
  * Customers paying in the month of sale receive a 2% cash discount.
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required:
a. Prepare a summary of cash collections for the 4th quarter.
b. Prepare a summary of cash disbursements for the 4th quarter.

The Following Information Pertains to Amigo Corporation