dthepita
Jun 1, 2012, 10:05 AM
Roswell Company has budgeted sales revenue as follows for the next 4 months:
>Feb. $150,000
March 120,000
April 105,000
May 165,000
Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is noncollectable.
Prepare a schedule which shows expected cash receipts from sales for the month of May
>Feb. $150,000
March 120,000
April 105,000
May 165,000
Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is noncollectable.
Prepare a schedule which shows expected cash receipts from sales for the month of May