Cost acc

Problem 3 (10 Points) - LO3 The sales budget of Rara Company is prepared as follows: Year 1, Quarter Year 2, Quarter 1 2 3 4 1 2 Budgeted unit sales 20,000 30,000 50,000 25,000 35,000 40,000 Additional information: a. The company's single product sells for $12 per unit. Budgeted sales in units for the next six quarter are as follows [all sales are on credit] b. Sales are collected in the following pattern: 80% in the quarter the sales are made, and the remaining 20% in the following quarter. On January1, Year 1, the company's statement of financial position showed $ 50,000 in account receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. Required: Prepared a sales budget and a schedule of expected cash collections! Please explain the result