Hedex, Co. has the following information in its sales budget: Budgeted unit sales: April 50,000 May 52,000 June 53,500 July 55,000 The budgeted sales price is $60 per unit. Assume that all sales are on credit and are expected to be collected 10% in the month of sale and 90% in the month following sale. Calculate the total amount of budgeted cash collections from customers in June.

Total cash collection= $633,000

Explanation:

Giving the following information:

Budgeted unit sales:

May 52,000

June 53,500

Assume that all sales are on credit and are expected to be collected 10% in the month of sale and 90% in the month following sale.

Cash collection June:

Sales on account June= (53,500*60)*0.1= $321,000

Sales on account from May= (52,000*60)*0.1= $312,000

Total cash collection= $633,000

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