The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are:
$$\begin{array} { | l | c | c | c | }
\hline & \text { January } & \text { February } & \text { March } \
\hline \text { Expected Sales } & \$ 200 & \$ 220 & \$ 300 \
\hline
\end{array}$$ 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received.
-Recorded bad debt expense for March should be:

Question

The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are:
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { January } & \text { February } & \text { March } \
\hline \text { Expected Sales } & \$ 200 & \$ 220 & \$ 300 \
\hline
\end{array}$$ 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received.
-Recorded bad debt expense for March should be:

Quizplus · Accepted Answer

The Answer of The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are:
 $$\begin{array} { | l | c | c | c | } 
\hline & \text { January } & \text { February } & \text { March } \
\hline \text { Expected Sales } & \$ 200 & \$ 220 & \$ 300 \
\hline
\end{array}$$ 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received.
-Recorded bad debt expense for March should be:

The Treasurer of Simmons Corporation, a Newly Formed Software Company