Beatles Ltd has budgeted sales revenue as follows:
Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectable.
Instructions :Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June.

Question

Beatles Ltd has budgeted sales revenue as follows:
  Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectable.
Instructions :Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June.

Quizplus · Accepted Answer

The Answer of Beatles Ltd has budgeted sales revenue as follows:
  Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectable.
Instructions :Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June.

Beatles Ltd Has Budgeted Sales Revenue as Follows