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

Question

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

                    Sales for Cash     Sales on Account January               $18,000             $ 70,000  February              $15,000             $ 90,000  March                 $24,000             $120,000  April                 $19,000             $100,000  May                   $26,000             $130,000  June                  $14,000             $ 95,000 

 On average, 30% 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 20% is collected three months after the month of sale. 

 Calculate ABC Company's budgeted accounts receivable at June 30. Do not use decimals in your answer. 

Explanation / Answer

Statement showing computations Particulars Amount Pending AR for June Month = 95,000 *70%        66,500.00 Pending AR for May Month = 130,000*30%        39,000.00 Pending AR for April Month = 100,000*20%        20,000.00 Total Accounts Receivable at 30 June      125,500.00

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