Trumbull Company budgeted sales on account of £120,000 for July, £211,000 for August, and £198,000 for September. Collection experience indicates that none of the budgeted sales will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be budgeted for September would be

Question

Quizplus · Accepted Answer

Explanation:Cash receipts from accounts receivable for September = 60% of August sales + 36% of July sales= 0.60 x £211,000 + 0.36 x £120,000= £126,600 + £43,200= £169,800

Trumbull Company Budgeted Sales on Account of £120,000 for July