Question: Budgeted sales for the 2nd quarter of year for Reuben Company are as follows:
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Budgeted Sales
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April
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$400,000
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May
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200,000
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June
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600,000
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The company normally collects 60% in the month of sale, 30% in the month following the sale and ten percent in the second month following the month of the sale.
Actual sales in February and March were dollar 600,000 & dollar 500,000 respectively.
Required:
[A] Make a schedule of cash collections on accounts receivable for the 2nd quarter.
[B] Determine the estimated ending balance in Accounts Receivable on June 30?