Solution-Provide a schedule of expected collections from

Provide a schedule of expected collections from customers

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Reference no: EM132520119

Question - M7 Inc. budgeted sales and direct materials purchases are as follows:

Month Budgeted Sales Budgeted Direct Material Purchases

March $180,000 $22,000

April $205,000 $35,000

May $280,000 $43,000

M7 Inc. sales are 30% cash and 70% credit. It collects credit sales 20% in the month of sale, 40% in the month following sale, and 35% in the second month following sale; 5% are uncollectible. M7 Inc. purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase.

Required -

1. Provide a schedule of expected collections from customers for May.

2. Provide a schedule of expected payment for direct materials for May.

Reference no: EM132520119

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Provide a schedule of expected collections from customers

Reference no: EM132520119

Reference no: EM132520119

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