Fastly Company had the following budgeted information for October:
1.
October 1 cash balance $3,500
2.
Expected sales 2,500 units at $25 each (half in cash,remainder on credit due in November)
3.
Inventory purchases 3,000 units at $14 each (all in cash)
4.
Rent $1,450
5.
Payroll $1,000
6.
Utilities and other costs $4,500
7.
Accounts receivable balance Oct.1,$35,000 (includes $700 bad debts allowance) A. What is the budgeted collection on accounts receivable for October?
B. What are the total cash disbursements for October?
C. What is the ending cash bal ance for October?
D. Assuming sales are collected in the month of sale and the following month, what is the ending cash balance for October?
Correct Answer:
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