Thomas Company's Past Experience Has Demonstrated That 55% of the Net

Thomas Company's past experience has demonstrated that 55% of the net sales billed in a month are collected during the month, 35% are collected in the following month and 9% are collected in the second following month. Customers are allowed a 3% discount if payment is made within 5 days after the billing date. 65% of the customers that pay in the month of the sale, pay within 5 days and take the discount. A sales budget for the four months ending June 30 is as follows:
$\begin{array}{ccc} \text { Month } & \text { Units } & \text { Selling Price } \\\text { March } & 30,000 \$ & 5.20 \\ \text { April } & 50,000 & 5.20\\ \text { May } & 80,000 & 5.60 \\ \text { June } & 40,000 & 5.60\\\end{array}$
Required:
Prepare a schedule of cash receipts for May and June.

Correct Answer:

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Sales: March: 30,000 × $5.20 ...

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