Thomas Company's past experience has demonstrated that 55% of the net sales billed in a month are collected during the month, 35% are collected in the following month and 9% are collected in the second following month. Customers are allowed a 3% discount if payment is made within 5 days after the billing date. 65% of the customers that pay in the month of the sale, pay within 5 days and take the discount. A sales budget for the four months ending June 30 is as follows:
Required:
Prepare a schedule of cash receipts for May and June.
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