Question

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $20,200 for March and $39,200 for April. What are the budgeted cash receipts from sales on account for April? $fill in the blank 1

Answer 1

Answer: $24950

Step-by-step explanation:

The budgeted cash receipts from sales on account for April will be calculated thus:

March sales = 75% × $20200 = $15150

April sales = 25% × $39200 = $9800

Therefore, the budgeted cash receipt from sales on account for April will be:

= $15150 + $9800

= $24950