Budgeting Cash Collection

Bubbles Consulting, which invoices its clients on terms 2/10, n/30, had credit sales for March and April of $100,000 and $200,000, respectively. Analysis of the Companys operations indicates that the pattern of customers payments on account is as follows (percentages are of total monthly credit sales):

Determine the estimated cash collected on customers accounts in April.

	Receiving Discount	Beyond Discount Period	Totals
In month of sale	50%	25%	75%
in month of following sale	10%	10%	20%
uncollectible accounts, returns			5%