Hannahs Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2019. Hannah estimates

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Hannah’s Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2019. Hannah estimates that approximately 70% of the handbag sales will be for cash and the rest will be on credit. Of the credit sales, 20% of the money will be received in the month of sale, 40% will be received the following month and 38% will be received 2 months after sale. Approximately 2% of credit sales are never collected and are written off.

The actual sales for the previous quarter ended 31 March 2019 were as follows.

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Calculate budgeted cash receipts for the quarter ended 30 June 2019.

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Financial Accounting

ISBN: 9780730363217

10th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield

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