Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kingston budgets total sales for June and July of $ 4 8 0 , 0 0 0 and $ 4 4 8 , 0 0

Kingston budgets total sales for June and July of $480,000 and $448,000, respectively. Cash sales are 70% of total sales. Of the credit sales, 15% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 20% are collected in the second month after the sale. Determine the amount of accounts recelvable reported on the company's budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.
\table[[Sales month,Total Sales,Credit Sales,As of July 31],[\table[[Percent],[Uncollected]],\table[[Amount],[Uncollected]]],[June,$,480,000,,,],[July,,448,000,,,],[Total,,,,,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Auditing Transforming The Internal Audit Process

Authors: Rick A. Wright Jr. CIA

1st Edition

1634540689, 978-1634540681

More Books

Students also viewed these Accounting questions

Question

What is the exogeneity assumption?

Answered: 1 week ago

Question

Know how to find a consultant

Answered: 1 week ago