Sugar Industries makes all sales on credit with 60% of the payment received in the month of sale, 20% in the month following the sale, 15% in the 2^nd month following sale, and the remaining 5% remains uncollected.
Budgeted sales are:
July $100 000
August $140 000
September $120 000
October $150 000
The budgeted receipts from debtors for September are:

Question

Quizplus · Accepted Answer

For September, receipts include 60% of September sales ($120,000 * 60% = $72,000), 20% of August sales ($140,000 * 20% = $28,000), and 15% of July sales ($100,000 * 15% = $15,000). Total = $72,000 + $28,000 + $15,000 = $115,000.

Sugar Industries Makes All Sales on Credit with 60% of the Payment