Question
The following sales budget has been prepared: MONTH Cash Sales Credit Sales September $100,000 $200,000 October $125,000 $180,000 November $207,000 $199,000 December $67,000 $144,000 Collection
The following sales budget has been prepared:
| MONTH | Cash Sales | Credit Sales |
|---|---|---|
| September | $100,000 | $200,000 |
| October | $125,000 | $180,000 |
| November | $207,000 | $199,000 |
| December | $67,000 | $144,000 |
Collection on credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What is the expected balance of Accounts Receivable at October 31?
A. $110,000
B. $180,000
C. $72,500
D. $118,000
Please let me know how you worked through the problem :(
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Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits
Authors: E. Scott Dunlap
2nd Edition
103244293X, 978-1032442938
