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 percent in the month of sale and 65 percent in the month following the sale. Five percent 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 percent of June sales.
Required:
Prepare a schedule of cash collections on accounts receivable for the third quarter.