Accounts collection Receivable budget Question 2 - Cash Budgets The last annual budget for Korara indicated that the company's budgeting milestones were not being achieved. Management is concerned with the situation and have asked you to break down the previous annual budget and use this as a basis for forecasting a budget for the next quarter. You extract the following data for the quarter ending 30 June 2017: Actual Sales Forecast Sales February March April May June $88,000 $85,000 $96,700 $83,500 $85,000 55% of all sales are on credit. Estimated collections are: 60% are collected in the month of sale, with a 1.25% discount; 30% in the month following sale; and 10% in the second month after sale