Valentina Company will begin operations on January 1st. The company has provided the following details concerning budgeted sales:
Budgeted Sales
$$\begin{array} { l l }
\text { Jan } & \$ 75,000 \
\text { Feb } & 69,000 \
\text { March } & 80,000 \
\text { April } & 62,000 \
\text { May } & 80,500 \
\text { June } & 92,000
\end{array}$$ The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.

Question

Valentina Company will begin operations on January 1st. The company has provided the following details concerning budgeted sales:
Budgeted Sales
 $$\begin{array} { l l } 
\text { Jan } & \$ 75,000 \
\text { Feb } & 69,000 \
\text { March } & 80,000 \
\text { April } & 62,000 \
\text { May } & 80,500 \
\text { June } & 92,000
\end{array}$$ The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.

Quizplus · Accepted Answer

The Answer of Valentina Company will begin operations on January 1st. The company has provided the following details concerning budgeted sales:
Budgeted Sales
 $$\begin{array} { l l } 
\text { Jan } & \$ 75,000 \
\text { Feb } & 69,000 \
\text { March } & 80,000 \
\text { April } & 62,000 \
\text { May } & 80,500 \
\text { June } & 92,000
\end{array}$$ The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.

Valentina Company Will Begin Operations on January 1st The Collection Policy of the Company Is to Collect 20