Question
Caba Corporation’s sales budget for the first half of the year is as follows: Budgeted Sales...
Caba Corporation’s sales budget for the first half of the year is as follows: Budgeted Sales January $ 115,000 February $ 198,000 March $ 220,000 April $ 250,000 May $ 210,000 June $ 290,000 Total: $ 1,283,000 Sales are 30% cash and 70% on account. Sales on account are to be collected over a three-month period, with 20% collected in the month of the sale, 65% collected in the first month following the sale, and 15% collected in the second month following the sale. What is the budgeted balance in the Accounts Receivable account as of June 30?
Would you please show the calculations how you will solve this question
Homework Answers
Answer #2
Accounts Receivables Balance as on June: $184,450
Accounts receivables balance as on June will constitute with the accounts receivables of the june and May Sales, Since any sales will collect in two months.
Accounts REceivables balance as on june:
Accounts Receivables from june
Credit Sales Sales in June : $290,000 *0.70 = $203,000
Cash Collected in the month of june ( June Sales ) = $203,000*0.20 = $40,600
Accounts Receivables balance in june sales = $203,000-$40,600 = $162,400
Accounts Receivables from May Sales :
Credit Sales Sales in May : $210,000 *0.70 = $147,000
Cash Collected in the month of May ( MAy Sales ) = $147,000*0.20 = $29,400
Cash collected in the month of june ( MAy sales) =$ 147,000*.0.65 = $95,550
Accounts Receivables balance in May Sales ( $147,000-$29,400-$95,550) = $22,050
Total Accounts Receivables Blance as on June : $ 162,400+$22,050 =$ 184,450 (ANswer)
answered by: anonymous
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