DynaCare Products' sales are all on account.History indicates that sales will be collected as follows: $$\begin{array}{l}
\begin{array} { l r }
\text { Month of sale } & 25 \% \
\text { Month following the sale } & 65 \% \
\text { Second month following the sale } & 8 \% \
\text { Never collected } & 2 \%
\end{array}\
\text { Budgeted sales data follows: }\
\begin{array} { l l }
\text { March } & \$ 300,000 \
\text { April } & \$ 250,000 \
\text { May } & \$ 260,000 \
\text { June } & \$ 230,000 \
\text { July } & \$ 200,000
\end{array}
\end{array}$$ How much are total budgeted cash collections during May?

Question

DynaCare Products' sales are all on account.History indicates that sales will be collected as follows: $$\begin{array}{l}
\begin{array} { l r } 
\text { Month of sale } & 25 \% \
\text { Month following the sale } & 65 \% \
\text { Second month following the sale } & 8 \% \
\text { Never collected } & 2 \%
\end{array}\
\text { Budgeted sales data follows: }\
\begin{array} { l l } 
\text { March } & \$ 300,000 \
\text { April } & \$ 250,000 \
\text { May } & \$ 260,000 \
\text { June } & \$ 230,000 \
\text { July } & \$ 200,000
\end{array}
\end{array}$$ How much are total budgeted cash collections during May?

Quizplus · Accepted Answer

To calculate the total budgeted cash collections during May, we need to consider the collections from sales made in March, April, and May. From March sales ($300,000), 8% will be collected in May, which is $24,000. From April sales ($250,000), 65% will be collected in May, which is $162,500. From May sales ($260,000), 25% will be collected in May, which is $65,000. Adding these amounts gives $24,000 + $162,500 + $65,000 = $251,500.

DynaCare Products' Sales Are All on Account How Much Are Total Budgeted Cash Collections During May? A)$230,500

DynaCare Products' Sales Are All on Account How Much Are Total Budgeted Cash Collections During May?
A)$230,500