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               $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.

Explanation / Answer

Answer-Budgeted accounts receivable at june 30

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

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

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