The following is the sales budget for the given months of Mark, SRL:
| Cash Sales |
Credit Sales |
| July |
$40,000 |
$250,000 |
| August |
$56,000 |
$241,000 |
| September |
$55,000 |
$248,000 |
| October |
$49,000 |
$198,000 |
| November |
$58,000 |
$284,000 |
Additional information to be used determining the expected cash collections each month that will be used in preparing the cash budget:
Collections on Credit sales:
- 65% in month of sale
- 20% in month following sale
- 15% in second month following sale
The Accounts Receivable balance on July 1 was $59,000. Of this amount, $42,000 represented uncollected June sales and $17,000 represented uncollected May sales. Part 1:
What is the expect cash to be collected in July?
Part 2: The budgeted Accounts Receivable on November 1 would be: