The Purple Music had the following budgeted sales for the fi…

Questions

The Purple Music hаd the fоllоwing budgeted sаles fоr the first hаlf of the current year: Cash Sales Collected in the Month of Sale Credit Sales January $90,000 $190,000 February $95,000 $210,000 March $30,000 $170,000 April $25,000 $110,000 May $35,000 $240,000 June $120,000 $40,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on credit sales:50% in month of sale40% in month following sale10% in second month following saleThe accounts receivable balance on January 1 of the current year was $65,000, of which $50,000 represents uncollected December sales and $15,000 represents uncollected November sales. (December credit sales were $100,000 and the November credit sales were $150,000.)The total cash collected during January by Purple Music would be: