Question
Harrington makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the
Harrington makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $80,000, $120,000, and $110,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31?
August Collections | August 31 Receivables Balance | |||||
A. | $ | 106,000 | $ | 126,000 | ||
B. | $ | 114,000 | $ | 100,000 | ||
C. | $ | 114,000 | $ | 94,000 | ||
D. | $ | 206,000 | $ | 100,000 | ||
E. | None of these options is correct. | |||||
or August and the company's budgeted receivables balance on August 31?
Multiple choice
A.
B.
C.
D..
E. None of these options is correct.
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
