The following sales budget has been prepared:
Collections are 50 percent in the month of sale, 40 percent in the month following the sale, and 5 percent two months following the sale. The remaining 5 percent is expected to be uncollectible.
-The total cash collections in July will be

Question

The following sales budget has been prepared:
  Collections are 50 percent in the month of sale, 40 percent in the month following the sale, and 5 percent two months following the sale. The remaining 5 percent is expected to be uncollectible.
-The total cash collections in July will be

Quizplus · Accepted Answer

The total sales for the month of July (based on the sales budget) are $200,000. Half of that amount, or $100,000, will be collected in July. Another 40 percent, or $80,000, will be collected in August. Five percent, or $10,000, will be collected in September. Therefore, the total cash collections in July will be $100,000.

The Following Sales Budget Has Been Prepared