Acme Company is preparing its budget for the upcoming year….
Acme Company is preparing its budget for the upcoming year. Cash sales are budgeted at $172,000 for May and $190,000 for June, and sales on account are budgeted at $360,000 for May and $370,000 for June. For its credit sales, Acme collects 20% in the month of the sale, 60% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on May 1 is $275,000, of which $205,000 represents uncollected April sales and $70,000 represents uncollected March sales. What are the total budgeted cash collections during the month of May?