Duffy Corporation Has Prepared the Following Sales Budget Collections Are 40% in the Month of Sale,45% in the l

question 82

Essay

Duffy Corporation has prepared the following sales budget:
$$\begin{array} { l r r } \text { Month } & \text { Cash Sales } & \text { Credit Sales } \\ \text { May } & \$ 16,000 & \$ 68,000 \\\text { June } & 20,000 & 80,000 \\\text { July } & 18,000 & 74,000 \\\text { August } & 24,000 & 92,000 \\\text { September } & 22,000 & 76,000\end{array}$$ Collections are 40% in the month of sale,45% in the month following the sale,and 10% two months following the sale.The remaining 5% is expected to be uncollectible.
Required:
Prepare a schedule of cash collections for July through September.

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Definitions:

Negotiable Instrument

A written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another.

Criminally Liable

The state of being legally responsible for the commission of a crime, subjecting the individual to criminal prosecution and penalties.

Corporate Officer

An executive or manager who holds a position of authority in a corporation, typically appointed by the board of directors.

Hostile Takeovers

Hostile takeovers are attempts by one company to acquire control of another company against the wishes of the target company's management and board of directors.