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Peak sales for J & J Products, a wholesale distributor of leaf rakes, occur in August. Sales the companys planning budget for the third quarter
Peak sales for J & J Products, a wholesale distributor of leaf rakes, occur in August. Sales the companys planning budget for the third quarter are shown below:
July August September
Budgeted Sales on account 6.3 2.6 2
From past experience, the company has learned that 1.4 in cash for each months of sales and collected 8.1 in after one month of sale, and 8 collected after two month following sale. Bad debts are negligible and can be ignored.
Prepare a schedule of expected cash collections from sales, for September.
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