Question
The LaPann Corporation has obtained the following sales forecast data: July August September October Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000 Credit
The LaPann Corporation has obtained the following sales forecast data:
July | August | September | October | |||||||||||
Cash sales | $ | 80,000 | $ | 70,000 | $ | 50,000 | $ | 60,000 | ||||||
Credit sales | $ | 240,000 | $ | 220,000 | $ | 180,000 | $ | 200,000 | ||||||
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.
The budgeted accounts receivable balance on September 30 would be?
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Financial Accounting Plus
Authors: Robert Libby, Patricia Libby, Daniel Short
8th Edition
1259116832, 9781259116834
