On July 1, the Accounts Receivable balance in the general ledger of Hawk Spur is $26,000. This amount is amde up of (no GST):

From April sales	From May sales	From June sales
$2,000	$6,000	$18,000

Estimated sales for the next three months are:

July	August	September
$40,000	$44,000	$18,000

Sales are normally 50% credit and 50% cash. Credit sales are invoiced on the last day od each month. Invoices are paid:

• 70% within one month of invoice date.
• 20% within two months of invoice date.
• 10% within three months of invoice date.

Required: A sales collections budget for the months July, August and September.

Workings - Calculating credit sales

Month	Owing	Payment Received	% Owing	Credit Sales
April
May
June

Sales Collections Budget

	%	April	May	June	July	August	September
Sales
Credit Sales
Collections:
1 Month
2 Months
3 Months
Cash Sales
Total collections