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Mitchell Company had the following budgeted sales for the last half of last year: Cash Sales Credit Sales July $20,000 $120,000 August $25,000 $140,000 September
Mitchell Company had the following budgeted sales for the last half of last year: |
Cash Sales | Credit Sales | |
July | $20,000 | $120,000 |
August | $25,000 | $140,000 |
September | $42,000 | $100,000 |
October | $47,000 | $142,000 |
November | $57,000 | $170,000 |
December | $50,000 | $320,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: |
Collections on credit sales: |
55% in month of sales |
35% in month of following sales |
10% in second month following sales |
What is the budgeted accounts receivable balance on December 1? |
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