The Tafoya Company has budgeted the following sales for the 1^st quarter of 2008: January $80,000
February $70,000
March $90,000
All sales are made on account. The company expects to collect 40% of sales on account in the month of the sale, 50% in the month following the sale, and the final 10% two months following the sale. Bad debts are immaterial to the budget. The balance in accounts receivable at the end of March will be:
A, $61,000
B) $54,000
C) $71,000
D) $64,000

Question

Quizplus · Accepted Answer

The Answer of The Tafoya Company has budgeted the following sales for the 1^st quarter of 2008: January $80,000 February $70,000 March $90,000 All sales are made on account. The company expects to collect 40% of sales on account in the month of the sale, 50% in the month following the sale, and the final 10% two months following the sale. Bad debts are immaterial to the budget. The balance in accounts receivable at the end of March will be: A, $61,000 B) $54,000 C) $71,000 D) $64,000

The Tafoya Company Has Budgeted the Following Sales for the 1st

The Tafoya Company Has Budgeted the Following Sales for the 1^st