Exercise 5-21

In the coming year, Game Monster, Inc., will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $14 to retailers throughout the country. All sales will be made on account. An expected 72 percent of sales will be collected within the quarter of the sale, and another 23 percent in the quarter following the sale. The remaining 5 percent of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted sales units 28,700 41,900 51,000 83,700

Prepare Game Monster, Inc.'s, cash receipts budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Budgeted units sold Budgeted sales price $ $ $ $ $ Budgeted sales revenue $ $ $ $ $

Cash Receipts Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Bad Debts 1st quarter sales $ $ $ $ $ 2nd quarter sales 3rd quarter sales 4th quarter sales Totals $ $ $ $ $

Calculate accounts receivable balance at the end of the last quarter, net of allowance for doubtful accounts. Assume that no accounts have been written off during the year.

Accounts Receivable balance $