Question
A company has the following budgeted sales for the next six months: Cash Credit Sales Sales June $ 100,000 $ 200,000 July $ 125,000 $
A company has the following budgeted sales for the next six months:
| Cash | Credit | |
| Sales | Sales | |
| June | $ 100,000 | $ 200,000 |
| July | $ 125,000 | $ 175,000 |
| August | $ 95,000 | $ 160,000 |
| September | $ 115,000 | $ 170,000 |
| October | $ 110,000 | $ 155,000 |
| November | $ 90,000 | $ 140,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
| Collections on credit sales: | |
| In month of sale | 10% |
| In month following sale | 85% |
| In second month following sale | 5% |
The accounts receivable balance on June 1 is $150,000. Of this amount, $30,000 represents uncollected May sales and $5,000 represents uncollected April sales. The total cash collected during June would be: _______________
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The Audit Process Principles Practice And Cases
Authors: Stuart Manson, Iain Gray, Louise Crawford
6th Edition
1408081709, 978-1408081709
