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, $240,000; May, $288,000; and June, $348,000. Historically, Suburban has had the following patient collection patterns:

	Portions of Total Sales
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?

$Answer