Brianna is trying to figure out the budgeted amount of cash receipts for the next month of operations. From June's records, she determines that in the next month, 60% of total sales will result in accounts receivable. Considering the records, she is expecting to receive the collections on accounts receivable (A/R) as follows: 55% in the month of sale, 40% in the next month after the sale, and 5% become uncollectible. In her budget, Brianna shows the budgeted sales of $80,000 and $84,000 for June and July respectively. What will the total amount of budgeted cash receipts be in July?

Question

Quizplus · Accepted Answer

Budgeted Cash Sales + Budgeted Collections on Credit Sales = [(July's Cash Sales of $33,600) + (July's Credit Sales of $50,400 × 55%) + (June's Credit Sales of $48,000 × 40%)] = [$33,600 + $27,720 + $19,200] = $80,520.

Brianna Is Trying to Figure Out the Budgeted Amount of Cash