Petal Co.reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\
\text { Budgeted sales } & \$ 930,000 & \$ 870,000 & \$ 1,080,000 \
\end{array}$
-All sales are on credit.
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2013 budgeted Accounts Receivable?
A)$900,000
B)$540,000
C)$465,000
D)$435,000

Question

Petal Co.reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\
\text { Budgeted sales } & \$ 930,000 & \$ 870,000 & \$ 1,080,000 \
\end{array}$ 
-All sales are on credit. 
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2013 budgeted Accounts Receivable?
A)$900,000
B)$540,000
C)$465,000
D)$435,000

Quizplus · Accepted Answer

The November 30, 2013 budgeted Accounts Receivable includes 50% of November sales, which is $870,000 * 50% = $435,000.

Petal CoReported the Following Information for 2013 -All Sales Are on Credit