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.
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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![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 Schedule
Jul.
Aug.
Sep.
Total planned sales
360000
350000
$
330000
Credit sales collected during month
Credit sales collected one month later
Credit sales collected two months later
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2989d983-0412-469f-a001-1f870eaa7a95%2Fd5d325ec-c059-40d2-ac64-9e1dcc1c40f0%2Ffs9ury_processed.png&w=3840&q=75)
Transcribed Image Text: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 Schedule
Jul.
Aug.
Sep.
Total planned sales
360000
350000
$
330000
Credit sales collected during month
Credit sales collected one month later
Credit sales collected two months later
$
$
![Whispering Company has the following sales projections for its second and third quarters:
Аpril
$300,000
Мay
$320,000
June
$340,000
July
$360,000
August
$350,000
September
$330,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2989d983-0412-469f-a001-1f870eaa7a95%2Fd5d325ec-c059-40d2-ac64-9e1dcc1c40f0%2F0zwzyep_processed.png&w=3840&q=75)
Transcribed Image Text:Whispering Company has the following sales projections for its second and third quarters:
Аpril
$300,000
Мay
$320,000
June
$340,000
July
$360,000
August
$350,000
September
$330,000
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.
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