Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions