The following sales budget has been prepared: $\begin{array}{lrr}
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline \text { September } & \$ 100,000 & \$ 200,000 \
\text { October } & 125,000 & 180,000 \
\text { November } & 130,000 & 210,000 \
\text { December } & 135,000 & 190,000
\end{array}$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of December 31.
A)$190,000
B)$75,500
C)$116,000
D)$210,000

Question

The following sales budget has been prepared: $\begin{array}{lrr}
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline  \text { September } & \$ 100,000 & \$ 200,000 \
\text { October } & 125,000 & 180,000 \
\text { November } & 130,000 & 210,000 \
\text { December } & 135,000 & 190,000
\end{array}$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of December 31.
A)$190,000
B)$75,500
C)$116,000
D)$210,000

Quizplus · Accepted Answer

The expected balance of Accounts Receivable as of December 31 includes 40% of December's credit sales ($190,000 * 40% = $76,000) and 10% of November's credit sales ($210,000 * 10% = $21,000), totaling $97,000.

The Following Sales Budget Has Been Prepared Collections Are 50% in the Month of Sale, 40% in }