The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,000. Firm sales were roughly
Question:
The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,000. Firm sales were roughly evenly split between credit and cash sales, with 40 percent of the credit sales collected in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the brewing company are given here:
MONTH SALES MONTH SALES
January...................$15,000..................March..................$25,000
February..................20,000....................April (projected)......30,000
a. Under these circumstances, what should the balance in accounts receivable be at the end of April?
b. How much cash did Pastors' realize during April from sales and collections?
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Calculate the AR balance for the end of April Credit sales 50 Collection in t...View the full answer
Foundations Of Finance
ISBN: 9780134083285
9th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
