I need help with this question .not sure how to calculate discounted period here .
Projected Monthly Sales:
Jan. $300,000
Feb. $340,000
Mar. $370,000
April. $390000
▪︎the company bills each month's sales on the last day of month.
▪︎recievables are booked gross and credit terms of sales are 2/10,n/30.
▪︎50% of the the billings are collected within the discounted period
▪︎30% are collected by the end of the month
▪︎15% are collected by the end of the second month
▪︎5% become uncollectible.
Budgeted cash collections during April would be :
a) $343,300
b) $347,000
c) $349,300
d) $353,000
Thankyou
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