Question

The WRT Corporation makes collections on sales according to the following schedule: 15% in month of sale 75% in month following sale 5% in second month following sale 5% uncollectible The following sales have been budgeted: Sales April $ 198,000 May $ 117,000 June $ 159,000 Budgeted cash collections in June would be:

Answer 1

so Budgeted cash collections in June is $121500

Step-by-step explanation:

given data

sale in month R1 = 15% = 0.15

sale month following R2 = 75% = 0.75

sale second month R3 = 5% = 0.05

sale uncollectible R4 = 5% = 0.05

Sales April A = $ 198,000

Sales May M = $ 117,000

Sales June J = $ 159,000

to find out

Budgeted cash collections in June

solution

we will find june Budgeted cash so

we will apply here formula that is

june collection = J × R1 ÷ M × R2 ÷ A × R3

put all value we get june collection

june collection = 159,000 × 0.15 + 117,000 × 0.75 + 198,000 × 0.05

june collection = 121500

so Budgeted cash collections in June is $121500