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In an effort to improve cash collection, Suburban Medical Clinic offers terms of 2/10, n/30, with a 5% discount on patient payments made with cash.

In an effort to improve cash collection, Suburban Medical Clinic offers terms of 2/10, n/30, with a 5% discount on patient payments made with cash. Suburban estimates its total billings for the second calendar quarter of the year as follows: April, $200,000; May, $240,000; and June, $290,000. Historically, Suburban has had the following patient collection patterns:

In month of sale: Cash at time of sale 25% On account during the discount period 20% On account after the discount period 10%

In month following sale: On account after the discount period 25%

In second month following sale: On account after discount period 15% Average portion uncollectible 5%

What would be Suburbans budgeted total cash collections for June?

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