QS 20-22 (Algo) Computing budgeted accounts receivable LO P2

Kingston budgets total sales for June and July of $370,000 and $478,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 20% are collected in the month of sale, 70% are collected during the first month after the sale, and the remaining 10% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the companys budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.

\begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Sales month } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Total Sales }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Credit Sales }} & \multicolumn{2}{|c|}{ As of July 31} \\ \hline & & & & & PercentUncollected & AmountUncollected \\ \hline June & $ & 370,000 & $ & 148,000 & & \\ \hline July & & 478,000 & & 191,200 & & \\ \hline Total & & & & & & \\ \hline \end{tabular}