Reference no: EM132581371

The following information pertains to Fiza Cosmetics:

Month                  Sales                    Purchases

July                   $15,000              $5,000

August               17,000                 6,000

September           19,000                7,000

October             21,000                  8,000

November            24,000            9,000

December             30,000            10,000

Cash is collected from customers in the following manner:

Month of sale 40%

Month following sale 50%

Two months following sale 10%

50% of purchases are paid for in cash in the month of purchase, and the 50% balance is paid the following month.

Required:

Question a. prepare a summary of cash collections for September and October.

Question b. prepare a summary of cash disbursements for September and October.