Miller Corporation has the following sales budget for the first four months of the current year:
Historically, the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale. November and December sales were $400,000 and $240,000, respectively. All sales are on account.
Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March.

Question

Miller Corporation has the following sales budget for the first four months of the current year:
  Historically, the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale. November and December sales were $400,000 and $240,000, respectively. All sales are on account.
Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March.

Quizplus · Accepted Answer

The Answer of Miller Corporation has the following sales budget for the first four months of the current year:
  Historically, the following trend has been established regarding cash collection of sales:
65% in month of sale
25% in month following sale
8% in second month following sale
2% uncollectible
The company allows a 2% cash discount for payments made by customers during the month of the sale. November and December sales were $400,000 and $240,000, respectively. All sales are on account.
Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March.

Miller Corporation Has the Following Sales Budget for the First