Question

The BRS Corporation makes collections on sales according to the following schedule:________.

35% in month of sale
61% in month following sale
4% in second month following sale
The following sales have been budgeted:_______.
Sales
April $200,000
May $130,000
June $120,000
Budgeted cash collections in June would be:________.
a. $129,300
b. $120,000
c. $120,800
d. $121,300

Answer 1

a. $129,300

Step-by-step explanation:

The computation of the cash collections in the month of June is as follows:

= $120,000 × 35% + $130,000 × 0.61 + $200,000 × 0.04

= $42,000 + $79,300 + $8,000

= $129,300

Hence, the Budgeted cash collections in June would be $129,300

Therefore the correct option is A

and the rest of the options are wrong