The budget director of Heather’s Florist has prepared the following sales budget. The company had $350,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale.
Required
Complete the schedule of cash receipts by filling in the missing amounts.
Determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
1.
|
2.
Accounts Receivable |
1. Schedule of cash receipts
July | August | September | |
Current cash sales | $ 67,000 | $ 67,000 | $ 76,000 |
Plus: Collections from accounts receivable | $ 350,000 | $ 93,000 | $ 99,000 |
Total budgeted collection | $ 417,000 | $ 160,000 | $ 175,000 |
Company will collect 100% of on account sales in next month only. so account receivable balance will be current month on account sales. so answer is: $136,600
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