Question
Budgeted sales information for Blue Company is as follows: Cash Credit Sales Sales June $ 20,000 $ 150,000 July $ 55,000 $ 120,000 August $
Budgeted sales information for Blue Company is as follows:
Cash | Credit | |
Sales | Sales | |
June | $ 20,000 | $ 150,000 |
July | $ 55,000 | $ 120,000 |
August | $ 40,000 | $ 140,000 |
September | $ 50,000 | $ 130,000 |
October | $ 35,000 | $ 100,000 |
November | $ 40,000 | $ 150,000 |
The following information has been provided to assist in preparing the Budgeted Cash Collections schedule:
Collections on credit sales: | |
In month of sale | 20% |
In month following sale | 65% |
In second month following sale | 15% |
At June 1st, accounts receivable balance is $45,000. This amount is comprised of $40,000 of uncollected May sales and $5,000 of uncollected April sales. Expected total cash collections during June are: _______________
You must include your calculations
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