Management at Breaker Corp. expects an Accounts Receivable collection pattern of 80 percent in the month of

Question:

Management at Breaker Corp. expects an collection pattern of 80 percent in the month of sale, 15 percent in the month after sale, and 5 percent in the second month after sale. All sales are on credit and Breaker Corp. has rarely had any uncollectible Actual sales for the last two months of 2009, and budgeted sales for the ï¬rst quarter of 2010 follow:

Required:
Prepare Breaker Corp.€™s cash collections budget for the ï¬rst quarter of 2010.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...