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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 $54,000 $150,000
October $59,000 $154,000
November $69,000 $220,000
December $100,000 $440,000

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:
40% in month of sales
30% in month of following sales
30% in second month following sales

What is the budgeted accounts receivable balance on December 1?

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