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The BIG Corporation makes collections on sales according to the following schedule: 25% in month of sale 65% in month following sale 5% in second month following sale 5% uncollectible The following sales have been budgeted: Sales April $120,000 May $100,000 June $110,000 Budgeted cash collections in June would be

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facundobuzzetti

Answer:

Total cash collection= $98,500

Explanation:

Giving the following information:

Cash collection:

25% in month of sale

65% in month following sale

5% in second month following sale

Sale:

April $120,000

May $100,000

June $110,000

Cash collection June:

Sales in cash June= 110,000*0.25= 27,500

Sales on account May= 100,000*0.65= 65,000

Sales on account April= 120,000*0.05= 6,000

Total cash collection= $98,500

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