Question

The BRS Corporation makes collections on sales according to the following schedule:45% in month of sale50% in month following sale5% in second month following saleThe following sales have been budgeted:Sales April $ 160,000May $ 180,000June $ 170,000Budgeted cash collections in June would be:___________a) $170,800b) $166,500c) $170,000d) $174,500

Answer 1

Answer:

$170,500

Explanation:

Calculation to determine what the Budgeted cash collections in June would be

Cash collections for June:March credit sales collected in June ($160,000 × 45%)$72,000

February credit sales collected in June ($180,000 × 50%) $90,000

January credit sales collected in June ($170,000 × 5%) $8,500

Total cash collections in June $170,500

Therefore the Budgeted cash collections in June would be:$170,500