Wallace Publishers Inc. collects SS% of its sales on account in the month of the

Question

Wallace Publishers Inc. collects SS% of its sales on account in the month of the sale and 45% in the month following the sale. t sales on account are budgeted to be $524,000 for April and $587,000 for May, what are the budgeted cash receipts from sales on account for May? Check My Work The primary source of estimated cash receipts is from cash sales and collections on account To estimate cash receipts from cash sales and collections on account, a schedule of collections from sales is prepared. Leaning Objective 5

Explanation / Answer

Calculate budgeted cash collection in may :

so total budgeted cash collection in may is $558650

May April sales (524000*45%) 235800 May sales (587000*55%) 322850 Total budgeted cash collection 558650

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