Budgeted sales for the third quarter of the year for Brown company are as follows:
July$300,000
August$375,000
September $450.000
The Company normally collects 30% in the month of sale and 65% in the month following the sale. Five percent of all sales are uncollectible and are written off in the following month. The balance in accounts receivable at July 1 was $245,000 which represents 70% of June sales.
Prepare a schedule of cash collections on accounts receivable for the third quarter.
