StudentJK Posts: 1, Reputation: 1 New Member #1 May 3, 2009, 05:03 PM
Cash Collections Budget
I have been working on this problem for three hours, and for some reason, none of my answers make sense. Could someone please help me find the correct answer?

Cash Sales:

March \$30,000
June \$45,000
Sept. \$37,500

Credit Sales:

March \$70,000
June \$105,000
Spet. \$87,500

Refer to the sales budget (printed above). Credit sales are typically collected as follows: 60% in the quarter of the sale, 30% in the quarter after the sale, 7% in the second quarter after the sale, 3% uncollectible. Prepare the cash collections bdget for the third quarter (the quarter ended Sept. 30)

My answer continues to be \$38,100 which doesn't seem correct because cash sales in Sept. were only \$37,500. Any help is much appreciated! Thank you
 morgaine300 Posts: 6,561, Reputation: 276 Uber Member #2 May 4, 2009, 12:54 AM

Can you please show where you got the answer from so someone can tell you where you've gone wrong?

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