All of porter corporation's sales are on account. sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. the remainder are uncollectible. the following are budgeted sales data for the company: january february march april total sales $400,000 $600,000 $500,000 $700,000 cash receipts in april are expected to be:
The Cash receipts in April are expected to be $620,000.
From credit sales of February (600,000*25%) 150,000
From credit sales of March (500,000*10%) 50,000
From credit sales of April (700,000*60%) 420,000
Cash receipts in April $620,000
Therefore, The Cash receipts in April are expected to be $620,000.