Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue Mary $120.000 Chine 160.000 My 130.000 August 120,000 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 50 percent in the month of sale. 25 percent in the month following sale, 20 percent in the second month following sale . 5 percent uncollectible The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $24,000, of which $7.000 represents uncollected March sales and 517.000 represents uncollected April sales Prepare a schedule of budgeted cash collections from sales for May June, and juy. Include a three month summary of estimated cash collections Perrier, Inc Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Total 3 Drevious Save Answers Next