Regular pattern of collection of credit sales


The Pots Company has obtained the following sales forecast data:

  • January; cash $80,000, credit $240,000
  • February; cash $70,000, credit $220,000
  • March; cash $50,000, credit $180,000

The regular pattern of collection of credit sales is 20% in the month of the sale, 70% in the month following the month of the sale, and the remainder in the second month the month of the sale. There are no bad debts. The budgeted cash receipts for April are.

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Accounting Basics: Regular pattern of collection of credit sales
Reference No:- TGS0705395

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