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Question - Caba Corporation's sales budget for the first half of the year is as follows:
Budgeted Sales
January $ 115,000
February $ 198.000
March $ 220,000
April $ 250,000
May $ 210,000
June $ 290,000
Total: $ 1,283,000
Sales are 30% cash and 70% on account. Sales on account are to be collected over a three-month period, with 20% collected in the month of the sale, 65% collected in the first month following the sale, and 15% collected in the second month following the sale. What is the budgeted balance in the Accounts Receivable account as of June 30?
a. $184,450
b. $263,500
c. $249,400
d. $232,000
Determine the cash discount available and Determine the cash remitted if the payment is made within the discount period.
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