E21-29. Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month May. June...

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E21-29. Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month May. June Sales Revenue $150,000 175,000 160,000 200,000 LO3 MBC < July August 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% in the month of sale. 20% in the month following sale. 15% in the second month following sale. 5% uncollectible. The company gives a 2% cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $85,000, of which $25,000 represents uncol- lected March sales and $60,000 represents uncollected April sales. (Hint: For collections of March and April receivables, start by determining total sales for the month. Assume the normal sales pattern.) REQUIRED Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three- month summary of estimated cash collections. E21-29. Cash Receipts The sales budget for Andrew Inc. is forecasted as follows: Month May. June Sales Revenue $150,000 175,000 160,000 200,000 LO3 MBC < July August 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% in the month of sale. 20% in the month following sale. 15% in the second month following sale. 5% uncollectible. The company gives a 2% cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $85,000, of which $25,000 represents uncol- lected March sales and $60,000 represents uncollected April sales. (Hint: For collections of March and April receivables, start by determining total sales for the month. Assume the normal sales pattern.) REQUIRED Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three- month summary of estimated cash collections.