High Life Corporation Has the Following Sales Budget for the Last

Essay

High Life Corporation has the following sales budget for the last four months of 2018: $\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 400,000 \\ \text { October } & 320,000 \\ \text { November } & 440,000 \\ \text { December } & 360,000 \end{array}$
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible The company allows a 2 percent cash discount for payments made by customers during the month of the sale. July and August sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for September, October, and November.