SCOW Company has budgeted sales revenues as follows:
Months Budgeted Sales Revenues
January $55,000
February 75,000
March 90,000
April 60,000
May 45,000
June 35,000
Past experience has indicated that 80% of sales each month are on credit and that collection of
credit sales occur as follows: 60% in the month of sale, 30% in the month following the sale,
and 5% in the second month following the sale. The other 5% is uncollectible.
Requirements
Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June
Months Budgeted Sales Revenues
January $55,000
February 75,000
March 90,000
April 60,000
May 45,000
June 35,000
Past experience has indicated that 80% of sales each month are on credit and that collection of
credit sales occur as follows: 60% in the month of sale, 30% in the month following the sale,
and 5% in the second month following the sale. The other 5% is uncollectible.
Requirements
Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June