The LaGrange Corporation had the following budgeted sales for the first half of

Question

The LaGrange Corporation had the following budgeted sales for the first half of the current year Credit Sales $ 70,000 $170,000 $ 75,000 $190,000 $ 45,000 $150,000 40,000 $125,000 $ 50,000 $220,000 $100,000 $190,000 Cash Sales January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled Collections on sales 45% in month of sale 40% in month following sale 15% in second month following sale The accounts receivable balance on January 1 of the current year was $69,000, of which $44,000 represents uncollected December sales and $25.000 represents uncollected November sales What is the budgeted accounts receivable balance on May 31?

Explanation / Answer

Budgeted account receivable on May 31 April (125,000*15%)= 18750 May (220,000*55%)= 121000 budgeted account receivable on may 31 139750 answer

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