Quattro began operations in April of this year.It makes all sales on account,subject to the following collection pattern: 30% are collected in the month of sale;60% 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 $60,000,$80,000,and $70,000,respectively,what were the firm's budgeted collections for June?

Question

Quizplus · Accepted Answer

In June, Quattro collects 10% of April sales ($60,000 * 10% = $6,000), 60% of May sales ($80,000 * 60% = $48,000), and 30% of June sales ($70,000 * 30% = $21,000). Total collections for June = $6,000 + $48,000 + $21,000 = $75,000.

Quattro Began Operations in April of This Year