Feeney Furniture prepared the following sales budget: Month Cash Sales Credit Sales March $ 20,000 $ 14,000 April $ 35,000 $ 16,000 May $ 42,000 $ 40,000 June $ 57,000 $ 53,000 Credit collections are 20 % two months following the sale, 65 % in the month following the sale, and 10 % in the month of sale. The remaining 5 % is expected to be uncollectible. What are the total cash collections in June at Feeney Furniture?

Question

Business

Riya Preston

1 January, 15:00

Feeney Furniture prepared the following sales budget: Month Cash Sales Credit Sales March $ 20,000 $ 14,000 April $ 35,000 $ 16,000 May $ 42,000 $ 40,000 June $ 57,000 $ 53,000 Credit collections are 20 % two months following the sale, 65 % in the month following the sale, and 10 % in the month of sale. The remaining 5 % is expected to be uncollectible. What are the total cash collections in June at Feeney Furniture?

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Answers (1)

Know the Answer?

Alisa Klein · Answer 1

Total cash collections in June = $103270

Explanation:

given data

sales budget

Month Cash Sales Credit Sales

March $ 20,000 $ 14,000

April $ 35,000 $ 16,000

May $ 42,000 $ 40,000

June $ 57,000 $ 53,000

Credit collections = 20 %

to find out

total cash collections in June

solution

we get here Total cash collections in June that is express as

Total cash collections = $60,000 + ($51000 * 0.62) + ($37000 * 0.30) + ($11000 * 0.05)

solve we get

Total cash collections in June = $103270