Miller Corporation has the following sales budget for the first four months of the current year: $$\begin{array} { l r }
\text { Month } & \text { Sales } \
\text { January } & \$ 400,000 \
\text { February } & 320,000 \
\text { March } & 440,000 \
\text { April } & 360,000
\end{array}$$ Historically,the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January,February,and March.

Question

Miller Corporation has the following sales budget for the first four months of the current year: $$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { January } & \$ 400,000 \
\text { February } & 320,000 \
\text { March } & 440,000 \
\text { April } & 360,000
\end{array}$$ Historically,the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January,February,and March.

Quizplus · Accepted Answer

The Answer of Miller Corporation has the following sales budget for the first four months of the current year: $$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { January } & \$ 400,000 \
\text { February } & 320,000 \
\text { March } & 440,000 \
\text { April } & 360,000
\end{array}$$ Historically,the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January,February,and March.

Miller Corporation Has the Following Sales Budget for the First