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Problem: Sales Budget and Expected Cash Collections: The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
Budgeted sales in 1st quarter: 11000
2nd quarter: 12000
3rd quarter: 14000
4th quarter: 13000
The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. Prepare the company's sales budget and schedule of expected cash collections.
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