The WRT 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:

Ramiro Wise

Ramiro Wise

Answered question

2022-12-03

The WRT 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:

Answer & Explanation

marystevensbUS

marystevensbUS

Beginner2022-12-04Added 9 answers

Explanation:
given data
sale in month R 1 = 15 % = 0.15
sale month following R 2 = 75 % = 0.75
sale second month R 3 = 5 % = 0.05
sale uncollectible R 4 = 5 % = 0.05
Sales April A = $ 198,000
Sales May M = $ 117,000
Sales June J = $ 159,000
solution
we will find june Budgeted cash so
we will apply here formula that is
june collection = J × R 1 ÷ M × R 2 ÷ A × R 3
put all value we get june collection
june collection = 159 , 000 × 0.15 + 117 , 000 × 0.75 + 198 , 000 × 0.05
june collection = 121500

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