00,000 May 225,000 June 250,000 All sales are on account (credit) with 50% collected in the month of sale, 40% collected in the following month after sale, and 10% collected in the second month after sale. There are no uncollectable accounts. Required:

00,000 May 225,000 June 250,000 All sales are on account (credit) with 50% collected in the month of sale, 40% collected in the following month after sale, and 10% collected in the second month after sale. There are no uncollectable accounts. Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Do it on the Road Bus Co.’s sales budget for the second quarter is as follows:

April	$200,000
May	225,000
June	250,000

All sales are on account (credit) with 50% collected in the month of sale, 40% collected in the following month after sale, and 10% collected in the second month after sale. There are no uncollectable accounts.

Required:

What would be the budgeted cash collections in the month of June?

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