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Budgeted Cash Collections In an effort to improve cash collection, Suburban Medical Clinic offers terms of 2/10, n/30, with a 5% discount on patient payments
Budgeted Cash Collections In an effort to improve cash collection, Suburban Medical Clinic offers terms of 2/10, n/30, with a 5% discount on patient payments made with cash. Suburban estimates its total billings for the second calendar quarter of the year as follows: April, $600,000; May, $720,000; and June, $870,000. Historically, Suburban has had the following patient collection patterns:
In month of sale: | |
Cash at time of sale | 25% |
On account during the discount period | 20% |
On account after the discount period | 10% |
In month following sale: | |
On account after the discount period | 25% |
In second month following sale: | |
On account after discount period | 15% |
Average portion uncollectible | 5% |
100% |
What would be Suburbans budgeted total cash collections for June?
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