A Company’s experience shows that 30% of its sales are for cash and 70% are on credit.An analysis of credit sales shows that 50% of credit sales are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Use the following sales budget to calculate the listed items and show your answers.
August September October November
Sales $300,000 $325,000 $335,000 $360,000
Receipts from case sales:
Collections from August credit sales:
Collections from September credit sales:
Collections from October credit sales:
Total cash collections during the month: