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    Sales Budget and Cash Collections Budget Schedule

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    Accounts receivable, May 31: (.3 x May sales of $450,000) = $135,000.
    Monthly forecasted sales: June, $400,000; July, $440,000; August, $500,000; September, $530,000.

    Sales consist of 70% cash and 30% credit. All credit accounts are collected in the month following the sales. Uncollected accounts are negligible and may be ignored. Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August.

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    Sales budget schedule:

    June, $400,000; July, $440,000; ...

    Solution Summary

    This solution provides a brief, but concise response of about 40 words which illustrates how to compose both a sales budget schedule and a cash collections budget.