QUESTION 1 Incorrect Marked out of 4.00 Flag question Cash Receipts The sales budget for Perrier Inc. is forecasted as follows Month Sales Revenue May June July August $140,000 140,000 180,000 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales Historically, the following trend has been established regarding cash collection of sales 60 percent in the month of sale 20 percent in the month following sale. 15 percent in the second month following sale. .5 percent uncollectible The company gives a 1 percent cash discount for payments made by customers during the month of sale The accounts receivable balance on April 30 is $25,000, of which $6,000 represents uncollected March sales and $19,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months Total May June July Total Cash receipts: $