Exam 2 -Chapters 22 to 24 6 Saved Help Save & Exit Submit 0 Required information

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Exam 2 -Chapters 22 to 24 6 Saved Help Save & Exit Submit 0 Required information /The following information applies to the questions displayed below. Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts receivable is $430.000, of which $255.000 pertain to sales that were made during June. Budgeted sales for July are $1.280.000 Ross collects 70% of sales in the month of sale, 20% in the following month, and then nai Osn te econd month after the sale. Pert 2 of 2 points What is the budgeted balance of Ross's accounts recevable as of July 31? Multiple Choice $469,000 $964,500 $1,122.000 $1,151000

Explanation / Answer

Accounts receivbale opening balance 430,000 less may sale collected (430,000-255,000) 175000 less june sale collected (255000/30*20%)= 170000 85,000 Add july sale 1,280,000 less colleted from july sale(1,280,000*70%) 896000 Balance in account receivable 469,000 answer 469,000

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