Question
Mitchell Company had the following budgeted sales for the last half of last year: Cash Sales Credit Sales July $70,000 $170,000 August $75,000 $190,000 September
| Mitchell Company had the following budgeted sales for the last half of last year: |
| Cash Sales | Credit Sales | |
| July | $70,000 | $170,000 |
| August | $75,000 | $190,000 |
| September | $50,000 | $150,000 |
| October | $55,000 | $150,000 |
| November | $65,000 | $220,000 |
| December | $100,000 | $400,000 |
| 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: |
| 45% in month of sales |
| 40% in month of following sales |
| 15% in second month following sales |
| What is the budgeted accounts receivable balance on December 1? |
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Financial And Managerial Accounting Vol 1
Authors: John Wild, Ken Shaw, Barbara Chiappetta
4th Edition
0077318358, 978-0077318352
