NUBD Company is preparing its cash budget for the month of May. The following information: Current month's sales Prior month's sales Sales two months prior to current month Sales three months prior to current month Doubtful accounts 14% 75% 6% 4% 1% The company allows 2% cash discount on payments made by customers during the month of sale. Credit sales are as follows: May - estimated April P 100,000 March 90,000 February P 80,000 95,000

NUBD Company is preparing its cash budget for the month of May. The following information: Current month's sales Prior month's sales Sales two months prior to current month Sales three months prior to current month Doubtful accounts 14% 75% 6% 4% 1% The company allows 2% cash discount on payments made by customers during the month of sale. Credit sales are as follows: May - estimated April P 100,000 March 90,000 February P 80,000 95,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...

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Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?