Question
Brown Company has prepared the following sales budget, Month Cash Sales Credit Sales February $14,000 $28,000 March $12,800 $29,200 April $10,800 $26,400 May $10,000 $24,400
Brown Company has prepared the following sales budget,
| Month | Cash Sales | Credit Sales |
| February | $14,000 | $28,000 |
| March | $12,800 | $29,200 |
| April | $10,800 | $26,400 |
| May | $10,000 | $24,400 |
| June | $13,200 | $30,000 |
Collections of credit sales are 40% in the month of the sale, 50% in the month following the sale, and 10% two months following the sale. Brown's Accounts Receivables as of June 30 are:
The answer is 20,440 , but I don't know how you get to that. If you can provide a detailed explanation, that would be great. Thanks!
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The New Yellow Book Government Auditing Standards
Authors: Rebecca A. Meyer
1st Edition
1119784638, 978-1119784630
