Ebony Co. has forecast sales to be $300,000 in May, $375,000 in June, $475,000 in...
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Accounting
Ebony Co. has forecast sales to be $300,000 in May, $375,000 in June, $475,000 in July and $600,000 in August. Forty percent of sales are made in cash, the remainder is on account. Credit sales are partially collected in the month of sale, with all collections completed by the end of the month following the sale. The August 31 accounts receivable is budgeted to be $108,000. What are budgeted cash collections for July?
a. $389,500
b. $267,000
c. $457,000
d. $415,000
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