n collects cash from 40. (Appendix 10A) Taft Corporatio customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December Budgeted sales are all on credit and amount to: May June July August 600,000 $600,000 700,000 500,000 What is the budgeted amount of cash to be collected in July? a) $560,000 b) $554,000 c) $558,000 d) $551,000 Answer: b Difficulty: Easy Learning Objective: Explain how a cash budget is developed. CPA: Management Accounting Bloomcode: Application 41. (Appendix 10A) Taft Corporation collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December Budgeted sales are all on credit and amount to: May June July $600,000 700,000 500,000 600,000 What is the budgeted amount of accounts receivable at the end of August? a) $353,000 b) $340,000 c) $329,000 d) $377,000 Answer: a Difficulty: Easy Learning Objective: Explain how a cash budget is developed. CPA: Management Accounting Bloomcode: Application 42. Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: 1 2nd3rdth