Dubuque Company has prepared the following sales budget: $$\begin{array} { l c r }
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\text { February } & \$ 14,000 & \$ 28,000 \
\text { March } & 12,800 & 29,200 \
\text { April } & 10,800 & 26,400
\end{array}$$ Collections are 40% in the month of sale, 50% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated.
Required: Prepare a schedule of cash collections for April.

Question

Dubuque Company has prepared the following sales budget: $$\begin{array} { l c r } 
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\text { February } & \$ 14,000 & \$ 28,000 \
\text { March } & 12,800 & 29,200 \
\text { April } & 10,800 & 26,400
\end{array}$$ Collections are 40% in the month of sale, 50% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated.
Required: Prepare a schedule of cash collections for April.

Quizplus · Accepted Answer

The Answer of Dubuque Company has prepared the following sales budget: $$\begin{array} { l c r } 
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\text { February } & \$ 14,000 & \$ 28,000 \
\text { March } & 12,800 & 29,200 \
\text { April } & 10,800 & 26,400
\end{array}$$ Collections are 40% in the month of sale, 50% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated.
Required: Prepare a schedule of cash collections for April.

Dubuque Company Has Prepared the Following Sales Budget Collections Are 40% in the Month of Sale, 50% in l