Answer:
The correct answer is $192,500.
Explanation:
According to the scenario, the given data are as follows:
Cash collected for current month of May = $175,000 × 35% = $61,250
Cash collected For current month of June = $225,000 × 35% = $78,750
For the next month of May ( June) = $175,000 × 65% = $113,750
For the next month of June (July) = $225,000 × 65% = $146,250
So, we can calculate the receipt from sales by using following formula:
Total sales = Cash collected For current month of June + For the next month of May ( June)
= $78,750 + $113,750
= $192,500
Hence, the budgeted cash receipts from sales on account for June is $192,500.
