Budgeted sales for the second quarter of the year for Reuben Company are as follows: The company normally collects 60 per cent in the month of sale and 30 per cent in the month following the sale. Ten per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at April 1 was £200,000, which represents 40 per cent of March sales.
Required:
Prepare a schedule of cash collections on accounts receivable for the second quarter.

Question

Budgeted sales for the second quarter of the year for Reuben Company are as follows:  The company normally collects 60 per cent in the month of sale and 30 per cent in the month following the sale. Ten per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at April 1 was £200,000, which represents 40 per cent of March sales.
Required:
Prepare a schedule of cash collections on accounts receivable for the second quarter.

Quizplus · Accepted Answer

The Answer of Budgeted sales for the second quarter of the year for Reuben Company are as follows:  The company normally collects 60 per cent in the month of sale and 30 per cent in the month following the sale. Ten per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at April 1 was £200,000, which represents 40 per cent of March sales.
Required:
Prepare a schedule of cash collections on accounts receivable for the second quarter.

Budgeted Sales for the Second Quarter of the Year for Reuben