Hannahs Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2016. Hannah estimates

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Hannah’s Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2016. Hannah estimates that approximately 70% 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 2016 were as follows:

January         $33620

February          34770

March              40180

The budgeted sales for the June quarter are as follows:

April               $42640

May                 43950

June                 45920


Required

Calculate budgeted cash receipts for the quarter ended 30 June 2016.

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Accounting

ISBN: 978-1118608227

9th edition

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

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