Mitchell Company had the following budgeted sales for the last half of last year:
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
-Assume that the accounts receivable balance on July 1 was $75,000.Of this amount,$60,000 represented uncollected June sales and $15,000 represented uncollected May sales.Given these data,the total cash collected during July would be:

Question

Mitchell Company had the following budgeted sales for the last half of last year: 
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale 
-Assume that the accounts receivable balance on July 1 was $75,000.Of this amount,$60,000 represented uncollected June sales and $15,000 represented uncollected May sales.Given these data,the total cash collected during July would be:

Quizplus · Accepted Answer

Cash collections for July:
 11eaa48f_7b7d_c5c9_9e4a_45c034e9f61a_TB2485_00 *Accounts receivables representing June credit sales = $60,000 = (30% + 10%)F1F1F1S1F1F1F10 June credit sales
June credit sales = $60,000 F1F1F1S1F1F1F10 (30% + 10%)= $150,000

Mitchell Company Had the Following Budgeted Sales for the Last