Question
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 60,000 $ 160,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |||
| January | $ | 60,000 | $ | 160,000 |
| February | $ | 65,000 | $ | 180,000 |
| March | $ | 44,000 | $ | 140,000 |
| April | $ | 39,000 | $ | 124,000 |
| May | $ | 49,000 | $ | 210,000 |
| June | $ | 90,000 | $ | 180,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
50% in month of sale
45% in month following sale
5% in second month following sale
The accounts receivable balance on January 1 of the current year was $74,000, of which $50,000 represents uncollected December sales and $24,000 represents uncollected November sales.
What is the budgeted accounts receivable balance on May 31?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar
10th International Edition
0130851779, 978-0130851772
