Question
14 Orchard has forecast sales to be $125,000 in February, $135,000 in March, $150,000 in April, and $140,000 in May. The average cost of goods
14
Orchard has forecast sales to be $125,000 in February, $135,000 in March, $150,000 in April, and $140,000 in May. The average cost of goods sold is 70% of sales. All sales are made on credit and sales are collected 60% in the month of sale, and 40% the month following. What is the budgeted Accounts Receivable balance on May 31?
Multiple Choice
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$98,000
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$56,000
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$58,800
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$84,000
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College Accounting A Practical Approach Chapters 1-25
Authors: Jeffrey Slater
10th Edition
0132286386, 978-0132286381
