Budgeted Sales for the Third Quarter of the Year for Brown

Essay

Budgeted sales for the third quarter of the year for Brown Company are as follows: The company normally collects 30 per cent in the month of sale and 65 per cent in the month following the sale. Five per cent of all sales are uncollectible and are written off in the following month.
The balance in accounts receivable at July 1 was £245,000, which represents 70 per cent of June sales.
Required:
Prepare a schedule of cash collections on accounts receivable for the third quarter.