5At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining 90% are on credit. Lyman Company expects to collect 30% ofits credit sales in the month of sale, 50% in the month following sale, and 18% in the second month following sale.Which ONE of the following is part of the cash collections expected to be made in January?O Cash sales from the preceding DecemberO Cash collections of credit sales from the preceding DecemberO Cash collections of credit sales from the preceding SeptemberO Cash sales from the preceding November

Answered: At Lyman Company, past experience…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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5
At Lyman Company, past experience reveals that 10% of sales are for cash and the remaining 90% are on credit. Lyman Company expects to collect 30% of
its credit sales in the month of sale, 50% in the month following sale, and 18% in the second month following sale.
Which ONE of the following is part of the cash collections expected to be made in January?
O Cash sales from the preceding December
O Cash collections of credit sales from the preceding December
O Cash collections of credit sales from the preceding September
O Cash sales from the preceding November

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Cash collection budget is one of the important budget being prepared in business to show cash to be collected from customers from cash sales and from credit sales.

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