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Match the amounts for items (1), (2), (3), and (4) in the Schedule of Cash Collections for the 2nd qtr based on the budgeted
Match the amounts for items (1), (2), (3), and (4) in the Schedule of Cash Collections for the 2nd qtr based on the budgeted sales and the following collections schedule based on past experience: Collections: Month of sale 20%, Month following sale - 70%, and 2nd month following sale 10%. Ignore bad debt. Also, Feb sales - $250,000 and March sales - $270,000 April May June Total February sales: $250,000 x 10% $25,000 na na $25,000 March sales: $270,000 x 70%, 10% 189,000 27,000 na 216,000 April sales total $300,000: $60,000 $210,000 (1) (2) May sales total $400,000: na $80,000 $280,000 $360,000 na na $40,000 (3) June sales $200,000: Total cash collections... $300,000 $274,000 (4) $350,000 $941,000 1. (1) $30,000 2. (2) 3. (3) $317,000 4. (4) $40.000
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