Unos has budgeted sales for the next five months as follows: Budgeted Sales in U

Question

Unos has budgeted sales for the next five months as follows: Budgeted Sales in Units January 6,200 units February 4,800 units March 9,100 units April 7,500 units May 5,300 units Unos product sells for $18 per unit. Experience has shown that 10% of the company's sales are cash sales and 90% of the company's sales are made on account. On average, 30% of the sales on account are collected in the month of sale, 35% are collected in the month following sale, 20% are collected in the second month following sale, and the remaining 15% is collected three months after the month of sale. Calculate Jackson Company's budgeted accounts receivable at May 31.

Explanation / Answer

Calculate Jackson Company's budgeted accounts receivable at May 31.

Account receivable in may May receivables (5300*18*90%*70%) 60102 April receivable (7500*18*90%*35%) 42525 March receivables (9100*18*90%*15%) 22113 Total account receivable may 31 124740

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