High Life Corporation has the following sales budget for the last four months of 2014:
Month Sales
September $400,000
October 320,000
November 440,000
December 360,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale. July and August sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for September, October, and November.

Question

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The Answer of High Life Corporation has the following sales budget for the last four months of 2014:
Month Sales
September $400,000
October 320,000
November 440,000
December 360,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale. July and August sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for September, October, and November.

High Life Corporation Has the Following Sales Budget for the Last