Item 3 Item 3 Crocetti Corporation makes one product and has provided the follow

Question

Item 3 Item 3 Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 121 Budgeted unit sales (all on credit): January 7,000 February 7,500 March 11,900 April 14,900 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to: Multiple Choice $544,500 $907,500 $605,000 $363,000

Explanation / Answer

budgeted accounts receivable balance at the end of February=(7500 units*60%)

=4500 units

which is equal to

=(4500*121)

=$544500(A)

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