The Tafoya Company has budgeted the following sales for the 1^st quarter of 2012: $$\begin{array} { l l } \text { January } & \$ 80,000 \ \text { February } & \$ 70,000 \ \text { March } & \$ 90,000 \end{array}$$ 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 balance in accounts receivable at the end of March includes 50% of March sales ($90,000 * 50% = $45,000) and 10% of February sales ($70,000 * 10% = $7,000), totaling $52,000. Additionally, 10% of January sales ($80,000 * 10% = $8,000) is also included, making the total $61,000.

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

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