Question

Two Brothers Moving prepared the following sales budget: Month Cash Sales Credit Sales March $21,000 $11,000 pri: April $30,000 $12,000 na May $42,000 $37.000 $1 June $55,000 $53,000 tion: Credit collections are 25% in the month of sale, 60% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be solu uncollectible. What are the total cash collections in May at Two Brothers Moving? Sh dis hedule A $60,550 DADIN O B. $17,550 e solu c. $102,000 OD. $55,650 Waris Br May, and in its pre See solu to) Cash schedule Click to select your answer. LOADIN Feb MacBook Pro

Answer 1

SOLUTION:
	SCHEDULE OF THE CASH RECEIPT FOR THE MONTH OF JAN , FEB & MAR
	PARTICULARS	MARCH	APRIL	MAY	JUNE
	Cash Sales (A)	$            21,000	$               30,000	$               42,000	$                55,000
	Credit Sales	$            11,000	$               12,000	$               37,000	$                53,000
	25 % Expected to collect in the same month (B)	$               2,750	$                 3,000	$                 9,250	$                13,250
	60% in the month following the sale ('C)		$                 6,600	$                 7,200	$                22,200
	10 % in second month following the sales(D)			$                 1,100	$                  1,200
	Total Cash Collected (A+B+C+D)	$            23,750	$               39,600	$               59,550	$                91,650
	ANSWER = Option A = $ 59,550