Pecan Corporation's budgeted March cash sales are $40,000 and budgeted credit sales are $260,000.
Pecan's budgeted Accounts receivable balance was $65,000 at the beginning of March and $79,000
At the end of March.
-How much was Pecan's budgeted cash collections from customers during March?

Question

Pecan Corporation's budgeted March cash sales are $40,000 and budgeted credit sales are $260,000.
Pecan's budgeted Accounts receivable balance was $65,000 at the beginning of March and $79,000
At the end of March. 
-How much was Pecan's budgeted cash collections from customers during March?

Quizplus · Accepted Answer

To calculate the budgeted cash collections from customers during March, we add the budgeted cash sales to the cash collected from credit sales. The cash collected from credit sales can be determined by analyzing the change in Accounts Receivable and adding the budgeted credit sales. The beginning Accounts Receivable is $65,000, and it increases to $79,000, indicating that not all credit sales were collected in cash during March. The increase in Accounts Receivable is $14,000 ($79,000 - $65,000), which means $246,000 ($260,000 - $14,000) of the credit sales were collected in cash. Adding the cash sales of $40,000 to this amount gives a total of $286,000 ($246,000 + $40,000) in budgeted cash collections from customers during March.

Pecan Corporation's Budgeted March Cash Sales Are $40,000 and Budgeted