Question
Razz Company is estimating the following sales: July $45,000 August $50,000 September $65,000 October $80,000 November $75,000 December $60,000 Sales at Razz are normally collected
Razz Company is estimating the following sales:
July | $45,000 |
August | $50,000 |
September | $65,000 |
October | $80,000 |
November | $75,000 |
December | $60,000 |
Sales at Razz are normally collected as follows:
10% in the month of sale
60% in the month following the sale
and the remaining 30% in the second month following the sale.
In Razz's budgeted balance sheet at November 30, at what amount will accounts receivable be shown?
Hint: Some of October sales were collected in October and some of October sales were collected in November. What is left uncollected? Use the same logic for November sales. AR is the amount still uncollected at November 30.
Round your final answer to the nearest dollar, if needed.
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