Horizon Delivery Services prepared the following sales budget: Month Cash Sales Credit Sales June $30,000 $15,000 July $45,000 $25,000 August $60,000 $35,000 September $48,000 $28,000 Credit collections are 20% in the month of sale, 70% in the month following the sale, and 5% two months following the sale. The remaining 5% is expected to be uncollectible. What are the total cash collections in August at Horizon Delivery Services?

Horizon Delivery Services prepared the following sales budget: Month Cash Sales Credit Sales June $30,000 $15,000 July $45,000 $25,000 August $60,000 $35,000 September $48,000 $28,000 Credit collections are 20% in the month of sale, 70% in the month following the sale, and 5% two months following the sale. The remaining 5% is expected to be uncollectible. What are the total cash collections in August at Horizon Delivery Services?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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