contestada

Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $80,000, $120,000, and $110,000, respectively, what were the firm's budgeted collections for May

Respuesta :

The total budgeted cash collections for the month of May are equal to $80,000.      

What do you mean by budgeted cash collections?

Budgeted cash collections refers to the quantities of cash it is assumed to gather primarily based totally on the forecasted income for your income budget. You can calculate your budgeted cash receipts to assist decide how good deal cash you need to use for your cash budget.

As per the given information:

May:  April collections - $80000 * 70/100 =     $56000

  May Collections   $120,000 * 20/100 =  $24,000      

Total  budgeted collections for the month of MAY -          $80,000  

Therefore, the total budgeted cash collections for the month of May are equal to $80,000.          

Learn more about budgeted cash collections:

https://brainly.com/question/16346203

   

#SPJ1