Normal cash collection experience has been that 40% of sales are collected during the month of sale, 20% in the month following sale,and 35% in the second month following sale. The remaining 5% of sales is never collected.Prepare the schedule of cash collections for the third quarter, by month and in total.Cash Collection ScheduleJul.Aug.Sep.Total planned sales360000350000$330000Credit sales collected during monthCredit sales collected one month laterCredit sales collected two months later$$ Whispering Company has the following sales projections for its second and third quarters:Аpril$300,000Мay$320,000June$340,000July$360,000August$350,000September$330,000Normal cash collection experience has been that 40% of sales are collected during the month of sale, 20% in the month following sale,and 35% in the second month following sale. The remaining 5% of sales is never collected.

The cash budget is prepared by the management to estimate the expected cash receipt and cash…

Normal cash collection experience has been that 40% of sales are collected during the month of sale, 20% in the month following sale, and 35% in the second month following sale. The remaining 5% of sales is never collected. Prepare the schedule of cash collections for the third quarter, by month and in total.

Normal cash collection experience has been that 40% of sales are collected during the month of sale, 20% in the month following sale, and 35% in the second month following sale. The remaining 5% of sales is never collected. Prepare the schedule of cash collections for the third quarter, by month and in total.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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