What is the amount of budgeted cash collections for June?
A) $406,900
B) $461,900
C) $460,000
D) $424,900

Question

Quizplus · Accepted Answer

Budgeted cash receipts for June = (April credit sales x Percent collected in second month following month of sale)+ (May credit sales x Percent collected in month following month of sale)+ (June credit sales x Percent collected in month of sale)+ June cash sales
Budgeted cash receipts for June = ($370,000 x 10%)+ ($432,000 x 20%)+ ($405,000 x 70%)+ $55,000 = $37,000 + $86,400 + $283,500 + $55,000 = $461,900

What Is the Amount of Budgeted Cash Collections for June