Prepare Bates & Hill's cash receipts budget for the first quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)
I need help with the red box, I am confused - help is appriciated! thank you
Laura Falk, Bates & Hill Fabricators' accounts receivable manager, has just received the company's sales budget for the first quarter.
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January
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February
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March
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Quarter
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Budgeted revenue
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$525,000 | $588,000 | $672,000 | $1,785,000 |
The company makes all sales on credit. Laura recently reviewed the company's collection history and found that 72% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 2% of sales are uncollectible. The company expects to have a net accounts receivable balance of $98,200 on January 1, and this amount represents the remaining receivables from December's sales.
Prepare Bates & Hill's cash receipts budget for the first quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)
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