Question

Russell Company expects cash sales for July of $ 12 comma 000​, and a 29​% monthly increase during August and September. Credit sales of $ 7 comma 000 in July should be followed by 11​% decreases during August and September. What are budgeted cash sales and budgeted credit sales for​ September? (Round final answers to the nearest​ dollar.)

Answer 1

September budgeted cash sales = $19,969

September budgeted credit sales = $5,545

Step-by-step explanation:

July expected cash sales = $12,000

July expected credit sales = $7,000

Monthly cash sales increase = 29%

Monthly credit sales decrease = 11%

August budgeted cash sales = $12,000 x 1.29 = $15,480

August budgeted credit sales = $7,000 x 0.89 = $6,230

September budgeted cash sales = $15,480 x 1.29 = $19,969

September budgeted credit sales = $6,230 x 0.89 = $5,545