Question

The WRT Corporation makes collections on sales according to the following schedule: 30% in month of sale 60% in month following sale 5% in second month following sale 5% uncollectible The following sales have been budgeted: Sales April $ 158,000 May $ 128,000 June $ 141,000 Budgeted cash collections in June would be:

Answer 1

Budgeted cash collections in June would be: $127,000

Step-by-step explanation:

Calculation of the Budgeted Collections for June

In the Month of Sale ($ 141,000 × 30 %) = $42,300

In Month following Sale ($ 128,000 ×60%) = $76,800

In Second Month following sale ($ 158,000 × 5%) = $7,900

Total Budgeted Collections for June = $127,000