Question
Flatiron Corp has the following budgeted sales in each quarter of the year 2020: Expected Sales Q1 $ 300,000 Q2 $ 320,000 Q3 $ 340,000
Flatiron Corp has the following budgeted sales in each quarter of the year 2020:
Expected Sales
Q1 $ 300,000
Q2 $ 320,000
Q3 $ 340,000
Q4 $ 360,000
Cash collection information are as follows:
1. Of all sales, 80% are on credit.
2. For the credit sales made in the year 2020; 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter; and 10% are collected in the second quarter after sale.
3. Accounts Receivable is estimated to be $60,000 on December 31,2019. The company expects to collect all outstanding receivable in the first quarter of 2020.
What is the ending balance of Accounts receivable for 2020?
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