Question
Link Company has budgeted sales for the next five months as follows: Budgeted Sales in Units June 3,700 units July 8,800 units August 5,400 units
Link Company has budgeted sales for the next five months as follows: Budgeted Sales in Units
June 3,700 units
July 8,800 units
August 5,400 units
September 6,900 units
October 4,300 units
Link Company's product sells for $15 per unit. 20% of the company's sales are cash sales and 80% are sales made on account. The sales on account are collected in the pattern 29% in the month of sale, 31% in the month following sale, 26% is collected in the second month following sale, and 14% is collected in the third month following the month of sale.
Calculate the total expected cash collections for the month of September and Link Company's budgeted accounts receivable at October 31.
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