Depot is a retailer preparing its budget for the first quarter of the year. Mana

Question

Depot is a retailer preparing its budget for the first quarter of the year. Management has prepared the following Sales Budget: Sales $253,000 $235,000 $229,000 $240,000 The company's cash collections: 33% cash sales, 44% credit sales collected in the following month, the remaining is January February March April sales collected two months following the sale. The company's budgeted accounts receivable balance on 31 is $100,000. Calculate the balance in accounts receivable at the end of Quarter 1. Round your final an Ignore the dollar sign. swer to the nearest integer.

Explanation / Answer

January February March Sales 253000 235000 229000 Cash Sales(33%) 83490 77550 75570 Credit Sales(67%) 169510 157450 153430 Account Recievable at end of Q1: March Credit Sales 153430 (All Credit Sales for March are Outstanding at March End) Feb Credit Sales 88172 (Feb Credit Sales-56% part to be collected in April is Outstanding at March End) Total 241602

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