The LaPann Company 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 30% in the
month of sale and 70% in the month following the month of
sale. There are no bad debts.
The budgeted accounts receivable balance on September 30th is:
| Correct Option A i.e. $126,000 | ||||
| July | August | September | October | |
| Cash Sales | 80,000 | 70,000 | 50,000 | 60,000 |
| Credit Sales | 240,000 | 220,000 | 180,000 | 200,000 |
| accounts receivable balance on September 30th is | 126,000 | |||
| (180000*70%) | (70% of september sales) | |||
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