XYZ Company has budgeted sales for the next six months as follows: March April May June July August Budgeted Sales $129,000 $206,000 $148,000 $277,000 $193,000 ? 20% of the company's sales are cash sales and 80% of the company's sales are made on account. On average, 18% of the sales on account are collected in the month of sale, 46% is collected in the month following sale, 19% is collected in the second month following sale, and the remaining 17% is collected three months after the month of sale. XYZ Company's budgeted accounts receivable at August 31 totaled $162,956. Calculate XYZ Company's budgeted sales in August.

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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XYZ Company has budgeted sales for the next six months
as follows:
March
April
May
June
July
August
Budgeted Sales
$129,000
$206,000
$148,000
$277,000
$193,000
?
20% of the company's sales are cash sales and 80% of the
company's sales are made on account. On average, 18% of
the sales on account are collected in the month of sale,
46% is collected in the month following sale, 19% is
collected in the second month following sale, and the
remaining 17% is collected three months after the month
of sale.
XYZ Company's budgeted accounts receivable at August 31
totaled $162,956.
Calculate XYZ Company's budgeted sales in August.
Transcribed Image Text:XYZ Company has budgeted sales for the next six months as follows: March April May June July August Budgeted Sales $129,000 $206,000 $148,000 $277,000 $193,000 ? 20% of the company's sales are cash sales and 80% of the company's sales are made on account. On average, 18% of the sales on account are collected in the month of sale, 46% is collected in the month following sale, 19% is collected in the second month following sale, and the remaining 17% is collected three months after the month of sale. XYZ Company's budgeted accounts receivable at August 31 totaled $162,956. Calculate XYZ Company's budgeted sales in August.
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