Question

In the coming year, Game Monster, Inc., will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $17 to retailers throughout the country. All sales will be made on account. An expected 74 percent of sales will be collected within the quarter of the sale, and another 21 percent in the quarter following the sale. The remaining 5 percent of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows:

	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Budget Sales Unit	28,100	41,400	50,600	81,000

Prepare Game Monster, Inc.'s, cash receipts budget for the coming year

Sales Budget:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
Budgeted Units sold
Budgeted Sales Price
Budgeted Sales Revenue

Cash Receipts Budget:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Bad Debts
1st Quarter Sales
2nd Quarter Sales
3rd Quarter Sales
4th Quarter Sales
Totals

Calculate accounts receivable balance at the end of the last quarter, net of allowance for doubtful accounts. Assume that no accounts have been written off during the year.

Accounts Receivable balance

$ ___________________

Answer 1