Question

Shown below are the budgeted sales for ABC Company for the next six months:

                   Sales for Cash     Sales on Account 
January               $15,000             $ 70,000
February              $18,000             $ 80,000
March                 $14,000             $160,000
April                 $26,000             $120,000
May                   $18,000             $170,000
June                  $24,000             $105,000

On average, 35% of the sales on account are collected in the month of sale, 40%
are collected in the month following sale, 10% are collected in the second month
following sale, and the remaining 15% is collected three months after the month
of sale.

Calculate ABC Company's budgeted accounts receivable at June 30.

Answer 1

Answer-Budgeted accounts receivable at june 30

	January	February	March	April	May	june
	$70000	$80000	$160000	$120000	$170000	$105000
Amount Recieved of sale in account
January	24500
Feburary	28000	28000
march	7000	32000	56000
April	10500	8000	64000	42000
May		12000	16000	48000	59500
June			24000	12000	68000	36750
ToTal	$70000			102000	127500	36750
Account Receivable on 30 june	0	0	0	18000	42500	68250

Total amount receivable on 30 June=18000+42500+68250=$128750