All sales are made on account

Assignment Help Financial Accounting
Reference no: EM13912465

Laura's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $610,000 in December. Because Laura's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 21 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $97,600 and is budgeted to be $73,200 as of January 31. Laura's Dress Delivery normally collects accounts receivable in the month following the month of sale. Required a. Determine the amount of cash Laura's Dress Delivery expects to collect from accounts receivable during January.

Expected Cash Collection?

 

Reference no: EM13912465

Questions Cloud

How to minimize the cost of producing a ton of steel : Assume that the tensile strength of a mixture of the two alloys can be determined by averaging that of the alloys that are mixed together. For example, a one-ton mixture that is 40% alloy 1 and 60% alloy 2 has a tensile strength of 0.4(42,000) + 0..
The finance director of a hardware wholesaler : The finance director of a hardware wholesaler has asked the accountant to ring each customer five days before their account payment is due, as a means of reducing the number of late payments. As a result of time constraints, however, only 60% of cust..
Simple money multiplier : Assuming individuals hold no currency, calculate the simple money multiplier for each of the following reserve ratios
Astronaut finds chlorine abundances : On a mission to a newly discovered planet, an astronaut finds chlorine abundances of 13.85 for and 86.15 for . What is the atomic mass of chlorine for this location?
All sales are made on account : Laura's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 21 percent drop in sales for January
Descriptive statistics and regression equations : Use excel to generate scatterplots, descriptive statistics, and regression equations.An additional observation at the bottom of the data file, needs to be added to the dataset. You should clearly mark on the Excel or Minitab file, which dataset (enti..
Explain when to use or not use a given methodology : Explain when to use or not use a given methodology. Justify your answers using examples and reasoning. Comment on the postings of at least two peers and indicate whether you agree or disagree with their views.
Longest chain and the molecular formula : Draw and name all of the structural isomers that are ketones with five carbon atoms in its longest chain and the molecular formula C5H10O.
Prepaid insurance in the trial balance : Of the prepaid insurance in the trial balance, $ 5,000 is for coverage during the months after December 31 of the current year

Reviews

Write a Review

Financial Accounting Questions & Answers

  Net income is positive-preferred by an existing shareholder

If net income is positive. Which of the below would likely be most preferred by an existing shareholder of a company?

  How does the balance in allowance for bad debts

How does the balance in Allowance for Bad Debts before adjustment affect the amount of the year-end adjustment under the percentage of sales method? Under the percentage of receivables method?

  Flexible spending account arrangement

Mary Giles participates in a flexible spending account (FSA) arrangement with her employer. She has a choice of receiving $5,000 of child care assistance or $5000 of health cost reimbursements. Mary’s adjusted gross income each year is approximately ..

  Preparation of a set of 2014 financial statements

Preparation of a set of 2014 financial statements for Kurgg Technology Corp, a company that purchases merchandise inventory for resale.

  Shares of preferred stock were outstanding

Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were o..

  What is the taxable income of prunus

For the year ended December 31, 2013, Prunus, Inc., reported net income before federal income tax expense of $900,000 per the corporation’s books. What is the taxable income of Prunus, Inc. for 2013?

  Evaluate a recent case in the news about business fraud

Evaluate a recent case in the news about business fraud

  Prepare the appropriate adjusting entry on december

McAllister's Framing and Art Supplies uses the percentage of sales method of accounting for uncollectible accounts. Prepare the appropriate adjusting entry on December 31, 20-9, and compute net realizable value.

  Ending balance in the work in process inventory account

Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $32,800 of this balance is direct labor cost, how much of it are direct materials cost? Manufacturing..

  Briefly describe four types of demands customers

attention to customers is necessary for success. Briefly describe four types of demands customers are currently placing on organizational performance.

  Accounts receivable at the end of august are

The Pitney Company's sales are 40% cash and 60% credit.  50% of credit sales are collected in the month of sale, 30% in the month following the sale, and 20% is collected two months after Accounts receivable at the end of August are?

  What is annual operating income from deluxe if the price

What is the annual operating income from Deluxe at the price of $5,000? What is annual operating income from Deluxe if the price is reduced to $4,000 and sales in units increase by 25%?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd