Question: Use the information below to answer the two questions that follow. A company is preparing for a monthly sales budget for January, February, and

Use the information below to answer the two questions that follow. A

Use the information below to answer the two questions that follow. A company is preparing for a monthly sales budget for January, February, and March next year. Sales are 100% on credit. Expected credit sales are as follows: January February March Credit sales are collected in - the month of sale: 60% - a month after sale: 30% - two months after sale: 5% - uncollectible: 5% (recognized in the month of sale) Q. What is the total cash collection in March next year? ANS. $ $200 $180 $290 Q. If the budgeted ending balance of net Accounts Receivable on January 31 next year is $85, what would be the budgeted total cash collection in February next year? (hint: $85 includes uncollected credit sales from December this year and January next year) ANS. $

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