A company budgets sales of $205,000 for April and $225,000 for May. Cash sales are 20%...

Transcribed Image Text:

A company budgets sales of $205,000 for April and $225,000 for May. Cash sales are 20% of total sales and credit sales are 80% of total sales. All credit sales are collected in the month after the sale. Prepare a schedule of cash receipts from sales for May. Schedule of Cash Receipts from Sales Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts May $ 225,000 A company budgets sales of $205,000 for April and $225,000 for May. Cash sales are 20% of total sales and credit sales are 80% of total sales. All credit sales are collected in the month after the sale. Prepare a schedule of cash receipts from sales for May. Schedule of Cash Receipts from Sales Sales Cash receipts from Cash sales Collections of prior period sales Total cash receipts May $ 225,000

Answer rating: 100% (QA)

To prepare the schedule of cash receipts from sales for May we need to consider both the cash sales ... View the full answer