Question - The following is the sales budget for the given months of BCO Pte Ltd.:
Cash Sales Credit Sales
March $60,000 $232,000
April $34,000 $219,000
May $43,000 $224,000
June $48,000 $290,000
July $58,000 $222,000
Additional information to be used determining the expected cash collections each month that will be used in preparing the cash budget:
Collections on Credit sales:
60% in month of sale
30% in month following sale
10% in second month following sale
The Accounts Receivable balance on March 1 was $60,000. Of this amount, $40,000 represented uncollected February sales and $20,000 represented uncollected January sales.
Part 1: What is the expect cash to be collected in March?
Part 2: The budgeted Accounts Receivable on July 1 would be?