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Minuteman Company's sales were budgeted for the first six months of its fiscal year as follows:
All sales are on credit and management estimates that 55% will be collected in the month following the sale, with the remaining 45% collected the second month following the sale.
-Cash collections during June are estimated at:

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Minuteman Company's sales were budgeted for the first six months of its fiscal year as follows:
  All sales are on credit and management estimates that 55% will be collected in the month following the sale, with the remaining 45% collected the second month following the sale.
-Cash collections during June are estimated at:

Quizplus · Accepted Answer

According to the information given, sales for June were budgeted to be $400,000. Of this amount, 55% is estimated to be collected in the following month, which would be July. That calculates to be $220,000. The remaining 45% of sales for June is estimated to be collected in the second month following the sale, which is August. That calculates to be $180,000. Adding these two amounts together gives us the total collections for June, which is $220,000 + $180,000 = $400,000. Therefore, the answer is choice B, $384,000.

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