Solution-Prepare the Expected cash collections during

Prepare the Expected cash collections during December

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Reference no: EM132975547

Problem - The following information is from Barkley's Auto Alarm Company financial records. Collections from customers are normally 70% in the month of sale, 20% in the month following the sale, and 9% in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2% discount allowed on purchases paid for by the tenth of the following month. Purchases for December are budgeted at $60,000, and sales for December are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of December. The company's cash balance on December 1 was $22,000.

Month	Sales	Purchases
August	$72,000	$42,000
September	$66,000	$48,000
October	$60.000	$36,000
November	$78,000	$54,000

Required - Prepare the following schedules:

A. Prepare the Expected cash collections during December.

B. Prepare the Expected cash disbursements during December.

C. Prepare the Expected cash balance on December 31.

Reference no: EM132975547

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Prepare the Expected cash collections during December

Reference no: EM132975547

Reference no: EM132975547

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