Question

Feeney Furniture prepared the following sales​ budget: Month Cash Sales Credit Sales March $ 20,000 $ 14,000 April $ 35,000 $ 16,000 May $ 42,000 $ 40,000 June $ 57,000 $ 53,000 Credit collections are 20​% two months following the​ sale, 65​% in the month following the​ sale, and 10​% in the month of sale. The remaining 5​% is expected to be uncollectible. What are the total cash collections in June at Feeney​ Furniture?

Answer 1

Total cash collections in June = $103270

Step-by-step explanation:

given data

sales​ budget

Month Cash Sales Credit Sales

March $ 20,000 $ 14,000

April $ 35,000 $ 16,000

May $ 42,000 $ 40,000

June $ 57,000 $ 53,000

Credit collections = 20​%

to find out

total cash collections in June

solution

we get here Total cash collections in June that is express as

Total cash collections = $60,000 + ( $51000 × 0.62 ) + ( $37000 × 0.30 ) +($11000 × 0.05)

solve we get

Total cash collections in June = $103270