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Riverbed Development, Inc. has budgeted sales revenues as follows: Budgeted Sales Revenues January $56,000 February 65,000 March 97,000 April 78,000 May 61,000 June 39,000 Past
Riverbed Development, Inc. has budgeted sales revenues as follows:
Budgeted Sales Revenues | |
January | $56,000 |
February | 65,000 |
March | 97,000 |
April | 78,000 |
May | 61,000 |
June | 39,000 |
Past experience has indicated that 70% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible.
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