The sales budget for Perrier Inc. is forecasted as follows:
To do a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales:
The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $29,000, of which $8,000 represents uncollected March sales and $21,000 represents uncollected April sales. do a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.
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