Shown below are the budgeted sales for ABC Company for the next six months: Sale
ID: 2405874 • Letter: S
Question
Shown below are the budgeted sales for ABC Company for the next six months: Sales for Cash Sales on Account January $15,000 $110,000 February $18,000 $125,000 March $26,000 $119,000 April $24,000 $140,000 May $14,000 $ 88,000 June $18,000 $137,000 On average, 25% of the sales on account are collected in the month of sale, 30% are collected in the month following sale, 35% are collected in the second month following sale, and the remaining 10% is collected three months after the month of sale. Calculate ABC Company's budgeted accounts receivable at June 30.
Explanation / Answer
Budgeted Accounts Receivables Budget
January
February
March
April
May
June
Total
Collection for January credit sales
$ 27,500.00
$ 33,000.00
$ 38,500.00
$ 11,000.00
$ 110,000.00
Collection for February credit sales
$ 31,250.00
$ 37,500.00
$ 43,750.00
$ 12,500.00
$ 125,000.00
Collection for march credit sales
$ 29,750.00
$ 35,700.00
$ 41,650.00
$ 11,900.00
$ 119,000.00
Collection forApril credit sales
$ 35,000.00
$ 42,000.00
$ 49,000.00
$ 126,000.00
Collection for May credit sales
$ 22,000.00
$ 26,400.00
$ 48,400.00
Collection for June credit sales
$ 34,250.00
$ 34,250.00
$ 27,500.00
$ 64,250.00
$ 105,750.00
$ 125,450.00
$ 118,150.00
$ 121,550.00
$ 562,650.00
Budgeted Accounts Receivables Budget
January
February
March
April
May
June
Total
Collection for January credit sales
$ 27,500.00
$ 33,000.00
$ 38,500.00
$ 11,000.00
$ 110,000.00
Collection for February credit sales
$ 31,250.00
$ 37,500.00
$ 43,750.00
$ 12,500.00
$ 125,000.00
Collection for march credit sales
$ 29,750.00
$ 35,700.00
$ 41,650.00
$ 11,900.00
$ 119,000.00
Collection forApril credit sales
$ 35,000.00
$ 42,000.00
$ 49,000.00
$ 126,000.00
Collection for May credit sales
$ 22,000.00
$ 26,400.00
$ 48,400.00
Collection for June credit sales
$ 34,250.00
$ 34,250.00
$ 27,500.00
$ 64,250.00
$ 105,750.00
$ 125,450.00
$ 118,150.00
$ 121,550.00
$ 562,650.00
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