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

Question

Richards Corporation has the following budgeted sales for the first half of next year: 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: The accounts receivable balance on January 1 is $76,000. Of this amount, $60,000 represents uncollected December sales and $16,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 30? $60,00 $137,000 $197,000 $108,000

Explanation / Answer

180,000 x 60% = $110,000 from may credit sales
146,000 x 20% = $20,550 from April credit sales

=$137,200

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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