Miller Corporation has the following sales budget for the first four months of the current year:
Historically,the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.All sales are on account.
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:
  Historically,the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.All sales are on account.
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:
  Historically,the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale.November and December sales were $400,000 and $240,000,respectively.All sales are on account.
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