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Question 2 Listed below are the budgeted sales in units for Devon Company for the next five months: May June July August September Budgeted Sales
Question 2 Listed below are the budgeted sales in units for Devon Company for the next five months: May June July August September Budgeted Sales in Units 6,300 units 2,800 units 4,100 units 7,600 units ????? units 20% of the company's sales are cash sales and 80% of the company's sales are made on account. The selling price is $25 per unit. On average, 15% of the sales on account are collected in the month of sale, 46% is collected in the month following sale, 22% is collected in the second month following sale, and the remaining 17% is collected three months after the month of sale. Calculate the budgeted cash collections for the month of August.
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