Assignment:
NIU Company's budgeted sales and direct materials purchases are as follows.
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Budgeted Sales
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Budgeted D.M. Purchases
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January
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$258,000
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$38,700
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February
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283,800
|
|
45,150
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|
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March
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348,300
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52,890
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NIU's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. NIU's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
Prepare a schedule of expected collections from customers for March.
NIU COMPANY
Expected Collections from Customers
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March
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March cash sales
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$ 139,320
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Collection of March credit sales
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|
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Collection of February credit sales
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|
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Collection of January credit sales
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|
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Total collections
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$
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Prepare a schedule of expected payments for direct materials for March.
NIU COMPANY
Expected Payments for Direct Materials