chapter 23 Q12

Kingston budgets total sales for June and July of $350,000 and $458,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31 Hint Determine the percent of June and July sales that are uncollected at July 31. Umeed Amom Uncollected $ June July Total 350,000 458,000