Search Engine Corp The Collection Policy of the Company Is to Collect 20

question 106

Essay

Search Engine Corp. has provided the following details concerning budgeted sales.
Budgeted Sales
$\begin{array}{|l|r|}\hline\text {jan } & \$ 75,000 \\\hline \text { Feb } & 69,000 \\\hline \text { March } & 80,000 \\\hline \text { April } & 82,000 \\\hline \text { May } & 80,500 \\\hline \text { june } & 92,000 \\\hline\end{array}$ The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.

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Definitions:

Income Tax Bracket

A range of incomes taxed at a particular rate under a progressive tax system.

Regressive Tax

A levy where the rate diminishes as the taxable amount grows.

Payroll Tax

Fees levied on employers or their employees, customarily figured as a percentage of what staff are paid.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your next dollar of taxable income.