Explore BrainMass

Explore BrainMass

    Preparing a Schedule of Cash Collections

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

    I am not understanding how to break these figures down quarterly. The examples in the textbook are done by quarters byt he assignment is asking for monthly figures:

    Duffy Corporation has prepared the following sales budget:
    Month Cash Sales Credit Sales
    May $16,000 $68,000
    June 20,000 80,000
    July 18,000 74,000
    August 24,000 92,000
    September 22,000 76,000

    Collections are 40% in the month of sale, 45% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible.

    Prepare a schedule of cash collections for July through September.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:49 am ad1c9bdddf

    Solution Summary

    The solution assists in preparing a schedule of cash collections.