1) Sales Budget with expected Cash Collections All sales are on account. The company collects 60% in month of sale and 35% in the following month. The remaining 5% is uncollectable. March 31 AR is 40,000 and all is collectable Month of sale Collections Following month collections 60% 35% Sales Budget April 40,000 May 30,000 Budgeted sales in units Times selling price per unit Budgeted sells in dollars Schedule of Cash Collections April May AR March 31 Balance $ 40,000 June 20,000 June Quarter 90,000 Quarter

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Give me answer within an hour I will give positive rating immediately ..its very urgent ....thankyou....
Budgeted sales are expected to be:
April
May
June
July
August
Selling Price
$20 Per unit
Prepare the Budgets for second quarter!!
1) Sales Budget with expected Cash Collections
All sales are on account. The company collects 60% in month of sale and 35%
in the following month. The remaining 5% is uncollectable.
March 31 AR is 40,000 and all is collectable
60%
Month of sale Collections
Following month collections
35%
Sales Budget
June
April
40,000
May
30,000
Budgeted sales in units
Times selling price per unit
Budgeted sells in dollars
Schedule of Cash Collections
April
May
AR
$ 40,000
March 31 Balance
April Sales
May Sales
June Sales
Total Cash Collections
40,000 Units
30,000 Units
20,000 Units
35,000 Units
30,000 Units
20,000
June
Quarter
90,000
Quarter
Transcribed Image Text:Budgeted sales are expected to be: April May June July August Selling Price $20 Per unit Prepare the Budgets for second quarter!! 1) Sales Budget with expected Cash Collections All sales are on account. The company collects 60% in month of sale and 35% in the following month. The remaining 5% is uncollectable. March 31 AR is 40,000 and all is collectable 60% Month of sale Collections Following month collections 35% Sales Budget June April 40,000 May 30,000 Budgeted sales in units Times selling price per unit Budgeted sells in dollars Schedule of Cash Collections April May AR $ 40,000 March 31 Balance April Sales May Sales June Sales Total Cash Collections 40,000 Units 30,000 Units 20,000 Units 35,000 Units 30,000 Units 20,000 June Quarter 90,000 Quarter
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