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Question - lisa Corporation has the following sales budget for the last four months of 2015:
September = $400,000
October = $320,000
November = $440,000
December = $360,000
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. Jul and August sales were $400,000 and $240,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for September, October, and November please show all work.
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