Richards Corporation had the following budgeted sales for the first half of next

Question

Richards Corporation had the following budgeted sales for the first half of next year: Cash Sales Credit Sales January $40,000 $140,000 February $45,000 $160,000 March $47,000 $120,000 April $52,000 $147,000 May $62,000 $190,000 June $70,000 $370,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on credit sales: 30% in month of sales 35% in month of following sales 35% in second month following sales The accounts receivable balance on January 1 is $80,000. Of this amount, $70,000 represents uncollected December sales and $10,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 30? $254,450 $70,000 $184,450 $133,000

Explanation / Answer

budgeted accounts receivable balance on May 30:

Particulars    Amount in $ May Sales receivable($190,000*35%) $66,500 April Sales receivable($147,000*35%) $51,450 Total Accounts receivable $117,950

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.