Explore BrainMass

Explore BrainMass

    Bo Company makes collections on sales according to the follo

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    3. Bo Company makes collections on sales according to the following schedule:

    30% in the month of sale
    60% in the month following sale
    8% in the second month following sale

    The following sales are expected: $100,000 in January, $120,000 in February, and $110,000 in March.

    Cash collections in March should be budgeted to be:

    © BrainMass Inc. brainmass.com June 4, 2020, 2:23 am ad1c9bdddf
    https://brainmass.com/business/accounting/bo-company-makes-collections-sales-according-455185

    Solution Summary

    Bo Company makes collections on sales according to the following schedule:

    30% in the month of sale
    60% in the month following sale
    8% in the second month following sale

    The following sales are expected: $100,000 in January, $120,000 in February, and $110,000 in March.

    Cash collections in March should be budgeted to be:

    $2.19

    ADVERTISEMENT