Prepare a cash collections budget (Learning Objective 3)} Refer to the sales budget presented in E10-16. Credit

Question:

Prepare a cash collections budget (Learning Objective 3)}

Refer to the sales budget presented in E10-16. Credit sales are typically collected as follows: $60 \%$ in the quarter of the sale, $30 \%$ in the quarter after the sale, $7 \%$ in the second quarter after the sale, and $3 \%$ uncollectible. Prepare the cash collections budget for the third quarter (the quarter ended September 30).

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