Question
Kuzma Foods, Inc. has budgeted sales for June and July at $670,000.00 and $720,000.00, respectively. Sales are 80% credit, of which 60% is collected in
Kuzma Foods, Inc. has budgeted sales for June and July at $670,000.00 and $720,000.00, respectively. Sales are 80% credit, of which 60% is collected in the month of sale and 40%
is collected in the following month. What is the budgeted Accounts Receivable balance on July 31?
A. $230,400.00
B. $288,000.00
C. $214,400.00
D. $576,000.00
2)
Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year:
| Jan | Feb | March | |
| Sales (30% cash) | $400,000.00 | $700,000.00 | $900,000.00 |
The company collects 60% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.
A. $406,000.00
B. $700,000.00
C. $504,000.00
D. $616,000.00
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