DATA INPUT
Budgeted Sales on Account: Collection Schedule:
June 122,500$ In month of sale 70 %
July 150,000 In 1st month after sale 15 %
August 175,000 In 2nd month after sale 10 %
September 200,000 In 3rd month after sale 4 %
October 225,000 Uncollectible 1 %
November 250,000
December 212,500
SOLUTION
1. Cash collections in October:
Month Amount Collected in October
of Sale Sales % Collected Collection
July 150,000$ x 0.04 6,000$
2. Cash collections in 4th quarter from credit sales in 4th quarter:
Amount Collected
Credit
Month of Sale Sales October November December
October 225,000$ 157,500$ 33,750$ 22,500$