Question

The White Corporation makes collections on sales according to the following schedule:

15% in month of sale

75% in month following sale

5% in second month following sale

5% uncollectible

The following sales have been budgeted:

	Sales
April	$	198,000
May	$	117,000
June	$	159,000

Budgeted cash collections in June would be:

$23,850

$121,500

$97,650

$138,500

Answer 1

Solution:

Budgeted Cash Collection for June

Cash Collection	June
From April Sales (5% in second month of sale)	$9,900
From May Sales (75% in month following Sale)	$87,750
From June Sales (15% in month of sale)	$25,350
Total June Collection	$123,000

From the data given in the question, the correct answer is $123,000 but this option is not given in the question.

It means some part of the question is missing. Please check and let me know.