Question
If the actual December 31st A/R balance was $12,000; projected sales in January are $50,000; 70% of sales are on credit; 60% of credit sales
If the actual December 31st A/R balance was $12,000; projected sales in January are $50,000; 70% of sales are on credit; 60% of credit sales are collected in the month of sale and 40% are collected in the month after the sale, what is the projected A/R balance on the pro forma balance sheet for the end of January?
a. $26,000
b. $14,000
c. $20,000
d. $35,000
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
