A firm has forecasted sales of $3,000 in April,$4,500 in May,and $12,000 in June.All sales are on credit.30% is collected the month of sale and the remainder the following month.What will be the balance in accounts receivable at the end of June?

Question

Quizplus · Accepted Answer

April sales: $3,000
30% collected in April: $900
Remaining balance for April: $2,100

May sales: $4,500
30% collected in May: $1,350
Remaining balance for May: $3,150

June sales: $12,000
30% collected in June: $3,600
Remaining balance for June: $8,400

The balance in accounts receivable at the end of June is the total remaining balances for May and June: 
$3,150 (May) + $8,400 (June) = $11,550

Therefore, the best choice is C.

A Firm Has Forecasted Sales of $3,000 in April,$4,500 in May,and