Search Engine Corp.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

Search Engine Corp.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 Search Engine Corp.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.

Search Engine Corp The Collection Policy of the Company Is to Collect 20