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: $\begin{array}{|lrrr}\text { Sales Budget } &\text { April } &\text { May } &\text { June }\
\text { Cash Sales } & 30,000 & 43,000 & 55,000 \
\text { Sales on Account } & 370,000 & 432,000 & 405,000 \
\hline&400,000&475,000&460,000
\end{array}$ Bright Minds expects to collect 70% of the sales on account in the month of sale, and 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

The budgeted cash collections for June include: 70% of June's sales on account ($405,000 * 70% = $283,500), 20% of May's sales on account ($432,000 * 20% = $86,400), 10% of April's sales on account ($370,000 * 10% = $37,000), plus June's cash sales ($55,000). Total = $283,500 + $86,400 + $37,000 + $55,000 = $461,900.

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