Homework SourseShown below are the budgeted sales for ABC Company for the n
Shown below are the budgeted sales for ABC Company for the next six months: Sales for Cash Sales on Account January $18,000 $ 95,000 February $15,000 $130,000 March $24,000 $ 70,000 April $26,000 $120,000 May $19,000 $ 90,000 June $14,000 $100,000 On average, 45% of the sales on account are collected in the month of sale, 30% are collected in the month following sale, 15% are collected in the second month following sale, and the remaining 10% is collected three months after the month of sale. Calculate ABC Company\'s budgeted accounts receivable at June 30.
Solution
Budgeted AR at June 30=10%*April credit salescredit sales+25%*May credit sales+55%June credit sales
=(0.1*120,000)+(0.25*90000)+(0.55*100,000)
which is equal to
=$89500.
