Miller Corporation has the following sales budget for the first four months of 2011:
Month Sales
January $400,000
February 320,000
March 440,000
April 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.November and December sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for January, February, and March.

Question

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The Answer of Miller Corporation has the following sales budget for the first four months of 2011:
Month Sales
January $400,000
February 320,000
March 440,000
April 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.November and December sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for January, February, and March.

Miller Corporation Has the Following Sales Budget for the First