Question

Capstone Publishers Inc. collects 50% of its sales on account in the month of the sale and 50% in the month following the sale. If sales on account are budgeted to be $309,000 for April and $355,000 for May, what are the budgeted cash receipts from sales on account for May

Answer 1

the budgeted receipts from sales on account is $332,000

Step-by-step explanation:

The computation of the budgeted receipts from sales on account is given below;

= $309,000 ×50% + $355,000 × 50%

= $154,500 + $177,500

= $332,000

Hence, the budgeted receipts from sales on account is $332,000

The above method should be applied for determining the budgeted receipts from sales on account