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Olson Company has the following data:
Month Budgeted Purchases
January $225,000
February 190,000
March 200,000
April 220,000
May 150,000
Purchases are paid as follows:
10% in the month of purchase
80% one month after purchase
10% two months after purchase
Prepare a schedule of cash disbursements for purchases for March, April and May.
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Vesely needs $160,000 to cover next Friday"s payroll. Its balance of outstanding accounts receivable totals $800,000. To alleviate this cash crunch, the company sells $170,000 of its receivables. Record the entry that Vesely would make.
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