Marvin Company has the following sales budget:
$\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\
\text { February } & \$ 14,000 & \$ 30,000 \
\text { March } & 12,800 & 32,000 \
\text { April } & 10,800 & 28,000
\end{array}$
Collections of credit sales are 40% in the month of sale,50% in the month after sale and 10% two months after sale.No uncollectible accounts are expected.
Required:
Prepare a schedule of cash collections for April.

Question

Marvin Company has the following sales budget:
 $\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\
\text { February } & \$ 14,000 & \$ 30,000 \
\text { March } & 12,800 & 32,000 \
\text { April } & 10,800 & 28,000
\end{array}$ 
Collections of credit sales are 40% in the month of sale,50% in the month after sale and 10% two months after sale.No uncollectible accounts are expected.
Required:
Prepare a schedule of cash collections for April.

Quizplus · Accepted Answer

The Answer of Marvin Company has the following sales budget:
 $\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\
\text { February } & \$ 14,000 & \$ 30,000 \
\text { March } & 12,800 & 32,000 \
\text { April } & 10,800 & 28,000
\end{array}$ 
Collections of credit sales are 40% in the month of sale,50% in the month after sale and 10% two months after sale.No uncollectible accounts are expected.
Required:
Prepare a schedule of cash collections for April.

Marvin Company Has the Following Sales Budget Collections of Credit Sales Are 40% in the Month of }&\text