Two Brothers Moving prepared the following sales budget:

Credit collections are 25% in the month of sale,60% in the month following the sale,and 10% two months following the sale.The remaining 5% is expected to be uncollectible.
What are the total cash collections in May at Two Brothers Moving?

Question

Two Brothers Moving prepared the following sales budget:

Credit collections are 25% in the month of sale,60% in the month following the sale,and 10% two months following the sale.The remaining 5% is expected to be uncollectible.
What are the total cash collections in May at Two Brothers Moving?

Quizplus · Accepted Answer

A)
March Sales $10,000 × 10% = $1,000
April Sales 16,000 × 60% = 9,600
May Sales 40,000 × 25% = 10,000
Total $20,600
Plus May Cash Sales 42,000
Total $62,600

Two Brothers Moving Prepared the Following Sales Budget