Downward Inc. has budgeted sales for the second quarter of $400,000 for April; $525,000 for May; and

Question:

Downward Inc. has budgeted sales for the second quarter of $400,000 for April; $525,000 for May; and $600,000 for June. Normally, 20% are cash sales and 80% of sales are on account. As well, 30% of the sales on account are normally collected during the month of sale, 50% in the following month, and 20% in the second month following sale. The balance as of April 1 is $250,000.
REQUIRED
Prepare the schedule of cash collections for the second quarter by month and in total.
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...