All sales are made on account. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent 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 percent discount allowed on purchases paid by the tenth of the following month. Purchases for November are budgeted at $150,000, and sales for November are budgeted at $165,000. Cash disbursements for expenses are expected to be $36,000 for the month of November. The company's cash balance on November 1 was $55,000. Calculate the excepted cash balance on November 30.

Question

Donna Cooley

Business

16 July, 17:16

All sales are made on account. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent 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 percent discount allowed on purchases paid by the tenth of the following month. Purchases for November are budgeted at $150,000, and sales for November are budgeted at $165,000. Cash disbursements for expenses are expected to be $36,000 for the month of November. The company's cash balance on November 1 was $55,000. Calculate the excepted cash balance on November 30.

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Answers (2)

Know the Answer?

Ben Roach · Answer 1

Answer:Am nevoie de Puncte

Valerie Aguilar · Answer 2

The expected ending balance on November 30 will be $134,500

Explanation:

Sales Collected (165,000*70%) $115,500

Expenses paid ($36,000)

Cash Opening $55,000

Cash ending Nov 30 $134,500