Greatday,Inc.makes a product that has peak sales in September of each year.The company has prepared a sales budget for the third quarter as shown below:
The company is in the process of preparing a cash budget for the third quarter and must determine the expected cash collections by month.To this end,the following information has been assembled:
The company gives a 3% cash discount to customers paying in the month of their sale.The company charges 2% interest to customers who pay in the second month following their sales.The accounts receivable balance to start the quarter is $150,000: $35,000 from May's sales and $115,000 from June's sales.
Required: Prepare a cash receipts budget for the third quarter.

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The Answer of Greatday,Inc.makes a product that has peak sales in September of each year.The company has prepared a sales budget for the third quarter as shown below:
The company is in the process of preparing a cash budget for the third quarter and must determine the expected cash collections by month.To this end,the following information has been assembled:
The company gives a 3% cash discount to customers paying in the month of their sale.The company charges 2% interest to customers who pay in the second month following their sales.The accounts receivable balance to start the quarter is $150,000: $35,000 from May's sales and $115,000 from June's sales.
Required: Prepare a cash receipts budget for the third quarter.