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Gabriella Johnson
on Dec 16, 2024

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Avril Company makes collections on sales according to the following schedule: 30% collected in the month of sale
60% collected in the month following sale
8% collected in the second month following sale
2% uncollectible
The following sales are expected:  Expected Sales  January $100,000 February 120,000 March 110,000\begin{array} { | l | l | } \hline & \text { Expected Sales } \\\hline \text { January } & \$ 100,000 \\\hline \text { February } & 120,000 \\\hline \text { March } & 110,000 \\\hline\end{array} January  February  March  Expected Sales $100,000120,000110,000 Cash collections in March should be budgeted to be:

A) $110,800.
B) $110,000.
C) $113,000.
D) $105,000.

Cash Collections

The process of gathering all cash payments received from customers as a result of sales or other transactions.

Uncollectible

Refers to debts or receivables that are deemed unrecoverable from debtors or customers, often written off as bad debts.

Sales

The entire income produced through the sale of products or services by a business.

  • Acquire knowledge on the procedure for budgeting customer cash inflows.
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America GomezDec 18, 2024
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