Logans sales are 40 cash and 60 credit credit sales are

Reference no: EM13572632

Logan Company's budgeted sales and direct materials purchases are as follows.

Budgeted Sales Budgeted D.M. Purchases

January $300,000 $60,000

February 330,000 70,000

March 350,000 80,000

Logan's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Hagen's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions

(a) Prepare a schedule of expected collections from customers for March.

(b) Prepare a schedule of expected payments for direct materials for March.

Reference no: EM13572632

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