Prepare a summary of cash disbursements for third quarter

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Reference no: EM132743538

The following information was obtained from Kelly Corporation:

Month Sales Purchases

April $32,000 $12,000

May 36,000 14,000

June 40,000 16,000

July 44,000 18,000

August 48,000 20,000

September 57,000 22,000

Cash is collected from customers as follows:

Month of sale (3% cash discount) 25%

Month following sale 45%

Two months following sale 25%

Amount uncollectible 5%

35% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Required:

Problem a. Prepare a summary of cash collections for the 3th quarter.

Problem b. Prepare a summary of cash disbursements for the 3th quarter

Reference no: EM132743538

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