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Back-at-cha Boomerang Company has the following budgeted credit sales: The pattern of collection of credit sales is 40% in the month of sale, 35% in
Back-at-cha Boomerang Company has the following budgeted credit sales: The pattern of collection of credit sales is 40% in the month of sale, 35% in the month following the month of sale, and 25% in the second month following the month of sale. There are no bad debts. Assuming no accounts receivables at August 1, the budgeted accounts receivable balance on October 31 would be: A. $74, 250 B. $58,000 C. $45,000 D. $65,000 Dead Eye Optometry Corporation has the following budgeted sales: If 50% of sales are collected in the month of the sale, 30% collected in the month following the sale, 15% collected in the second month of following the sale, and with the remaining sales being uncollectible; what would the total budgeted cash receipts be for April? A. $58,000 B. $69, 250 C. $47, 500 D. $61,000
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