Prepare a schedule of budgeted cash collections

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Band Instruments Company has the following sales budget for the first three months of the current year:

Month

Sales Revenue

January

$600,000

February

150,000

March

440,000

Historically, the following trend has been established regarding cash collection of sales:

65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible The company allows a 2 percent cash discount for payments made by customers during the month of the sale. November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March

Reference no: EM131773381

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