Is the answer 160,900? thanks Shown below are budgeted sales for Betty DeRose, I

Question

Is the answer 160,900? thanks

Shown below are budgeted sales for Betty DeRose, Inc.: ud nt January February March April Ma 6,900 units 4,200 units 5,500 units 7,300 units 6,100 units All sales are made on account. The selling price is $20 per unit. The sales are collected in the pattern 25% in the month of sale, 35% in the month after sale, 30% in the second month following sale, and the final 10% is collected in the third month following sale Calculate Betty's budgeted accounts receivable at May 31. Do not use decimals in your answer

Explanation / Answer

Answer:-

:- Budgeted accounts receivable at may 31:-

Remaining March month Accounts Receivable =$110000*10% =$11000

Remaining April month Accounts Receivable =$146000*40% =$58400

Remaining May month Accounts Receivable =$122000*75% =$91500

Total Accounts Receivable at May 31:- $11000+$58400+$91500 =$160900

Notes:- January and February month of sales has been received upto May 31.

Statement of cash collection from debtors Particulars January February March April May Budgeted Sales Units (A) 6900 4200 5500 7300 6100 Selling price per unit (B) $20 per unit $20 per unit $20 per unit $20 per unit $20 per unit Budgeted Sales $ (C=A*B) 138000 84000 110000 146000 122000 Cash Collection 25% in month of sale 34500 21000 27500 36500 30500 35% in following month of sale 48300 29400 38500 51100 30% in the second month following sale 41400 25200 33000 Final 10% in the third month following sale 13800 8400 Total collection 34500 69300 98300 114000 123000

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