The collection policy of the company is to collect 20 in


Question - Search Engine Corp. has provided the following details concerning budgeted sales:

Budgeted Sales

Jan $75,000

Feb 69,000

March 80,000

April 82,000

May 80,500

June 92,000

The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.

Calculate the cash receipts from customers for the first six months.

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Accounting Basics: The collection policy of the company is to collect 20 in
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