The Following Are Forecasts of Sales and Purchases for Savannah

question 90

Essay

The following are forecasts of sales and purchases for Savannah Company:

	Sales	Purchases
April	$80,000	$30,000
May	90,000	40,000
June	85,000	30,000

All sales are on credit.Records show that 70 percent of the customers pay the month of the sale,20 percent pay the month after the sale,and the remaining 10 percent pay the second month after the sale.Purchases are all paid the following month at a 2 percent discount.Cash disbursements for operating expenses in June were $5,000.
Required: Prepare a schedule of cash receipts and disbursements for June.
Schedules of Cash Receipts and Disbursements for June

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Definitions:

Hidden Objections

Consumer uncertainties or concerns regarding a product or service that are not openly expressed during the sales process.

Clearwater Hampers

A company known for creating and delivering gift baskets and hampers filled with various goods, often for specific occasions such as holidays or celebrations.

Trial Close

A sales technique where the seller asks the prospect a question that assumes the sale has been made, to gauge their readiness to complete the purchase.

Handling Objections

The process of addressing and overcoming concerns or objections that potential customers may have about a product or service.