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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 sale25 percent in month following sale8 percent in second month following sale2 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
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