The budgeted sales of Gwearlas, LLC for the given months are as follows:

Cash SalesCredit SalesJune$41,000$263,000July$43,000$239,000August$60,000$240,000September$51,000$252,000October$59,000$287,000To prpare cash budget, the company needs to determine the expected cash collections each month, and has provided the following additional information:The Accounts Receivable balance on June 1 was $59,015. Of this amount, $48,015 represented uncollected May sales and $11,000 represented uncollected April sales.

Collections on Credit sales:

• 55% in month of sale
• 35% in month following sale
• 10% in second month following sale

Part 1:What should the June cash collected be? $Answer

Part 2:

For October 1, what is budgeted Accounts Receivable?Answer

$137,400

$133,850

$154,350

$213,350

$131,900