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Consult | progran Class Sc sp?content id-_6254443 1&displayName-HW+CH58 course id- 138 rary Cash Receipts...

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Accounting

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Consult | progran Class Sc sp?content id-_6254443 1&displayName-HW+CH58 course id- 138 rary Cash Receipts The sales budget for Perrier Inc. is forecasted as follows Month Sales Revenue May June July August $100,000 130,000 00,000 140,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historicaly, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale . 20 percent in the month following sale. 15 percent in the second month following sale 5 percent uncollectible The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $29.000, of which $8.000 represents uncollected March sales and $21.000 represents uncollected April sales. Prepare a schedule of budgeted cash colections from sales for May, June. and July. Include a three-month summary of estimated cash collections Perrier, Ine Schedule of Budgeted Cesh Cellections Quarterly by Months July Tocal Cash receipts Check Next page

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