If on the last day of February the actual A/R balance was $12,000; projected sales in March are $50,000; 70% of sales are on credit; 60% of credit sales are collected in the month of sale and 40% are collected in the month after the sale, what is the projected A/R balance on the pro forma balance sheet for the end of March?

Question

Quizplus · Accepted Answer

Projected credit sales = $50,000 x 70% = $35,000Collections in March = $35,000 x 60% = $21,000Collections in April = $35,000 x 40% = $14,000Projected A/R balance = $12,000 + $21,000 - $14,000 = $26,000

If on the Last Day of February the Actual A/R