Question
Business Technology Company makes business calculators. Based on experience the company collects 70% of sales in the month of sale and the remaining amount in
Business Technology Company makes business calculators. Based on experience the company collects 70% of sales in the month of sale and the remaining amount in the following month. At the end of June, the accounts receivable balance was $21,500, which is expected to be collected in July. Budgeted sales are as follows: July August September Quarter Total Units 2,000 3,000 4,000 9,000 Selling Price $65 $65 $65 $65 Budgeted Sales $130,000 $195,000 $260,000 $585,000 Required: Calculate the expected cash collections from sales by month and in total for the quarter. (8 marks) What are the budgeted accounts receivable at the end of September? (1 mark)
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