Question
On average, it takes 3 months before Wildhorse Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with
On average, it takes 3 months before Wildhorse Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40% paying the month after sale, and 35% paying their balance 2 months after the sale; the remaining 5% is considered uncollectible. Given Wildhorse's budgeted sales for the 4 months leading up to quarter- end, as shown below, determine the companys collectible (or net) A/R balance on September 30.
Budgeted sales :
June $48,900
July $44,500
August $51,800
September $63,000
A/R balance on September 30 : $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started