Budgeting Cash:

Whitney's, Inc., sells on terms of 5% discount for "cash and carry" or 2/10, n/30 and estimates it's 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:

In month of sale: Portions of Total Sales

Cash at time of sale.......................................25%

On account, during discount period...............15%

On account, after discount period..................10%

In month following sale:

On account, during discount period...............20%

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