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Cash Receipts The sales budget for Perrier Inc. i...




Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $100,000 June 170,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: ?60 percent in the month of sale. ?20 percent in the month following sale. ?15 percent in the second month following sale. ?5 percent uncollectible. The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $27,000, of which $6,000 represents uncollected March sales and $21,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Total Cash receipts:


Paper#9452 | Written in 18-Jul-2015

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