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Oriole's sales budget for the third quarter of the upcoming year shows budgeted sales of $460000, $532000, and $497000 in July, August, and September, respectively.
Oriole's sales budget for the third quarter of the upcoming year shows budgeted sales of $460000, $532000, and $497000 in July, August, and September, respectively. All sales are made on credit. The cash receipts budget for September shows total cash receipts equal to $462490. Oriole grants a discount to customers who pay within 10 days of the invoice. Oriole collects 60% of sales within the discount period, 20% in the month of sale but outside the discount period, 15% in the month following sale and the remainder is uncollectible. What is the discount offered by Oriole, and what are the cash collections in September associated with September sales? 3%; $388654 5%; $382690 5%; $283290 3%; $480654
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