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?
The problem reads:
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
