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Suppose a lumber yard has the following data: times Accounts receivable, May 31: (0.30 x May sales of $360,000) = $108,000 times Monthly forecasted sales:
Suppose a lumber yard has the following data:
times | Accounts receivable, May 31: (0.30 x May sales of $360,000)= $108,000 |
times | Monthly forecasted sales: June $432,000; July $448,000; August, $504,000; September, $ 535,000 |
Sales consist of 70 % cash and 30 % credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored.
Requirement
1. Prepare a sales budget schedule and a cash collections budget schedule for June, July,and August.
June | July | August | |
Credit Sales | |||
Cash Sales | |||
Total Sales |
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