Question

MyLife Chronicles Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $170,000 for June and $200,000 for July, what are the budgeted cash receipts from sales on account for Jul

Answer 1

The budgeted cash receipts from sales on account for July is $179,000

Step-by-step explanation:

budgeted sales on account June $170,000

budgeted sales on account July $200,000

Therefore budgeted cash receipts from sales on account for July:

(0.7 X $170,000) + (0.3 X $200,000) = $ 179,0000