Crandon,Inc has prepared a sales budget for the second quarter as shown below:
The company is in the process of preparing a cash budget for the second quarter.To this end,the following information has been assembled:
The company gives a 1% cash discount to customers paying in the month of their sale.Records show past sales to be: January $300,000; February $340,000 and March $360,000.
Required: Prepare a cash receipts budget for the third quarter.

Question

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The Answer of Crandon,Inc has prepared a sales budget for the second quarter as shown below:
The company is in the process of preparing a cash budget for the second quarter.To this end,the following information has been assembled:
The company gives a 1% cash discount to customers paying in the month of their sale.Records show past sales to be: January $300,000; February $340,000 and March $360,000.
Required: Prepare a cash receipts budget for the third quarter.

Crandon,Inc Has Prepared a Sales Budget for the Second Quarter