A company has the following budgeted sales for the months of April 2022 to July 2022: April
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Question:
A company has the following budgeted sales for the months of April 2022 to July 2022:
| April | May | June | July | |
| Credit sales | 420,000 | 360,000 | 520,000 | 440,000 |
| Cash sales | 600,000 | 520,000 | 650,000 | 610,00 |
The regular pattern of collection of credit sales is 50% in the month of sale, 30% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no irrecoverable receivables. What would the budgeted accounts receivable be by close of business on 31st May 2022?
a. $333,000
b. $408,000
c. $378,000
d. $264,000
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