Bates Corporation Has Prepared the Following Sales Budget Credit Sales Are 80% of Total Sales

Essay

Bates Corporation has prepared the following sales budget: $\begin{array}{lr}\text { Month }&\text { Expected Sales }\\\hline\text { May } & \$ 84,000 \\\text { June } & 100,000 \\\text { July } & 92,000 \\\text { August } & 116,000 \\\text { September } & 98,000\end{array}$ Credit sales are 80% of total sales.Collections are 80% in the month of sale, 15% in the month following the sale.The remaining 5% is expected to be uncollectible.
Required: Prepare a schedule of cash collections for June through August.