Pro forma accounts receivable balance calculation) On March 31, 2013, Mike\'s Bi

Question

Pro forma accounts receivable balance calculation) On March 31, 2013, Mike's Bike Shop had outstanding accounts receivable of $16,750. Mike's sales are roughly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the bike shop are given here: Under these circumstances, what should the balance in accounts receivable be at the end of April? How much cash did Mike's realize during April from sales and collections? Under these circumstances, what should the balance in accounts receivable be at the end of April?] (Round to the nearest dollar.) How much cash did Mike's realize during April from sales and collections?] (Round to the nearest dollar.)

Explanation / Answer

Balance at the end of the April Accounts Receivable on March 31 16750 Add: April Credit Sales 14500 (29000/2) Less: February Credit Sales collected -4750 (19000/2*50%) March Credit Sales Collected -6000 (24000*50%/2) Accounts Receivable 20500

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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