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Music World reports the following sales forecast: August, $150,000; and September, $170,000. Cash sales are normally 40% of total sales and all credit sales are expected to be collected in the month following the date of sale. Prepare a schedule of cash receipts for September.

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Karabo99

Answer and Explanation:

music world reports receipt budget for september month

sales                                                                              $170,000

cash sales (40%*170,000)                                            $68,000

collections of prior months (150,000*60%)                 $90,000

total cash receipts                                                         $158,000

note the following:

- cash sales are 40% of the total sales

- since 40% is cash sales, the 60% of total sales is the credit sales

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