Bright Minds Toy Company prepared the following sales budget for the second quarter.Projected sales for each of the first three months of operations are as follows: $\begin{array}{lrrr}
\text { Sales Budget } & \text { April } & \text { May }& \text { June}\
\text { Cash Sales } & 30,000 & 43,000 & 55,000 \
\text { Sales on Account } &\underline{ 370,000} &\underline{ 432,000 }&\underline{405,000}\
&\underline{400,000}&\underline{475,000}&\underline{460,000}
\end{array}$ Bright Minds expects to collect 70% of the sales on account in the month of sale,20% in the month following the sale,and the remainder in the second month following the sale.
What is the amount of budgeted cash collections for June?

Question

Quizplus · Accepted Answer

To calculate the budgeted cash collections for June, we need to first determine the amount of sales made in April and May that are yet to be collected.

For April sales: 
Total sales = $300,000 
70% collected in April = $210,000 
20% collected in May = $60,000 
10% collected in June = $30,000

Therefore, the amount of April sales yet to be collected in June = $60,000 + $30,000 = $90,000

For May sales: 
Total sales = $400,000 
70% collected in May = $280,000 
20% collected in June = $80,000 
10% collected in July = $40,000

Therefore, the amount of May sales yet to be collected in June = $80,000

Adding the above amounts gives us: 
April sales yet to be collected in June = $90,000 
May sales yet to be collected in June = $80,000 
Total budgeted cash collections for June = $90,000 + $80,000 + $291,900 (June sales collected in June) = $461,900

Therefore, the correct answer is B.

Bright Minds Toy Company Prepared the Following Sales Budget for the Second