Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QS 2 2 - 2 2 ( Algo ) Computing budgeted accounts receivable LO P 2 Kingston budgets total sales for June and July of

image text in transcribed
QS 22-22(Algo) Computing budgeted accounts receivable LO P2
Kingston budgets total sales for June and July of $370,000 and $328,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.
Answer is complete but not entirely correct.
\table[[Sales month,Total Sales,Credit Sales,As of July 31],[\table[[Percent],[Uncollected]],\table[[Amount],[Uncollected]]],[June,$,370,000,$,222,000\times ,15%,33,300\times ],[July,,328,000,,196,800\times ,80%,157,440\times ],[Total,,,,,,190,740]]
image text in transcribed

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

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

3rd Canadian edition

978-1118727737, 1118727738, 978-1118033890

More Books

Students also viewed these Accounting questions

Question

What are the issues in this critical incident?? LO857

Answered: 1 week ago