Feeney Furniture prepared the following sales budget:

Credit collections are 15% two months following the sale,50% in the month following the sale and 30% in the month of sale.The remaining 5% is expected to be uncollectible.
What are the total cash collections in May at Feeney Furniture?

Question

Feeney Furniture prepared the following sales budget:

Credit collections are 15% two months following the sale,50% in the month following the sale and 30% in the month of sale.The remaining 5% is expected to be uncollectible.
What are the total cash collections in May at Feeney Furniture?

Quizplus · Accepted Answer

B)
March Sales $10,000 × 15% = $1,500
April Sales 16,000 × 50% = 8,000
May Sales 40,000 × 30% = 12,000
Total $21,500
Plus May Cash Sales 42,000
Total $63,500

Feeney Furniture Prepared the Following Sales Budget