Budgeting Cash

Whitney$$s$,$ Inc., sells on terms of $5\%$ discount for $$cash and carry$$ or $2/10,$ n$/30$ and estimates its total sales for the second calendar quarter of next year as follows: April, $$300,000$; May, $$240,000$; and June, $$360,000.$ An analysis of operations indicates the following customer collection patterns:

Portion of Total Sales

In month of sale:

Cash at time of sale $30\%$

On account, during discount period $15\%$

On account, after discount period $10\%$

In month following sale:

On account, during discount period $15\%$

On account, after discount period $10\%$

In second month following sale:

On account, after discount period $15\%$

Average portion uncollectible $5\%$

$100\%$

Prepare an estimate of the cash to be collected from customers during June.

Estimated Collections from Customers in June

April Sales

On account, no discount Answer $1$

May Sales

On account, no discount Answer $2$

On account, with discount Answer $3$

June sales

On account, no discount Answer $4$

On account, with discount Answer $5$

Cash Answer $6$

Total estimated June collections Answer $7$