Question
Hello, I am really in need of help right now! I have an accounting exam in about 5 hrs and I need to know how
Hello, I am really in need of help right now!
I have an accounting exam in about 5 hrs and I need to know how to solve problem for reference to the exam. Please answer ASAP!
Harrti Corporation has budgeted for the following sales:
July$447,000
August$582,000
September$616,000
October$891,000
November$740,000
December$700,000
Sales are collected as follows: 20% in the month of sale; 55% in the month following the sale; and the remaining 25% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?
The answer to this is 745,000 and the solution is this:
December sales accounts receivable ($700,000 80%)$560,000
November sales accounts receivable ($740,000 25%)185,000
Total accounts receivable$745,000
My question here is how did they get those percentages since they are not the percentages from the sales? Please explain as clearly as possible and with detail :)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started