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5. Spartan Company's sales are 50% in cash and 50% on credit. 70% of the credit sales are collected in the month of sale,
5. Spartan Company's sales are 50% in cash and 50% on credit. 70% of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: Total sales September $50,000 October $70,000 November $60,000 December $80,000 Prepare a cash collections budget for the given months.
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