Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $100,000 June 180,000 July 200,000 August 140,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. - 20 percent in the month following sale. - 15 percent in the second month following sale. - 5 percent uncollectible. The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $29,000, of which $8,000 represents uncollected March sales and $21,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Cash receipts: $ 75,900 $ 126,920 x $ 169,800 Total 372,620 X $