connect. ACCT206: ACCT206 ACCOUNTING pter 8 Quiz Question 2 (of 7) previous ques

Question

connect. ACCT206: ACCT206 ACCOUNTING pter 8 Quiz Question 2 (of 7) previous question Avril Company makes collections on sales according to the following schedule: 25% in the month of sale 71% in the month following sale 4% in the second month following sale The following sales have been are expected January February March Expected Sales $180,000 10,000 $100,000 Budgeted cash collections in March should be budgeted to be $110,300 $103,100 O $100,000o O $100720 References Multiple Choice Difficuty

Explanation / Answer

Answer:-

Hence Budgeted cash collections in March should be budgeted to be $110300.

Statement of cash collection from debtors Particulars January February March Expected Sales $ 180000 110000 100000 Cash Collection 25% in month of sale $ (a) 45000 27500 25000 71% in following month of sale $ (b) 127800 78100 4% in second month following sale $ (c) 7200 Total collection $ (a+b+c) 45000 155300 110300

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