Petal Co. reported the following information for 2016: $ \quad\quad\quad\quad\quad\quad\quad\quad\text { October } \quad \text { November }\quad \text { December }$
$\text { Budgeted sales } \quad \$ 930,000 \quad \$ 870,000 \quad \quad\$ 1,080,000$
All sales are on credit. $\bullet$Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30 2016 budgeted Accounts Receivable?

Question

Petal Co. reported the following information for 2016: $ \quad\quad\quad\quad\quad\quad\quad\quad\text { October }  \quad \text { November }\quad \text { December }$
$\text { Budgeted sales } \quad \$ 930,000 \quad \$ 870,000 \quad \quad\$ 1,080,000$ 
All sales are on credit. $\bullet$Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30 2016 budgeted Accounts Receivable?

Quizplus · Accepted Answer

For November 30, 2016, the budgeted Accounts Receivable includes 50% of November sales and 50% of October sales. November sales are $870,000, and October sales are $930,000. Therefore, the calculation is (0.5 * $870,000) + (0.5 * $930,000) = $435,000 + $465,000 = $900,000. However, since we are looking for the amount still receivable by the end of November, we only consider the 50% of November sales that hasn't been collected yet, which is $435,000.

Petal Co Reported the Following Information for 2016 October November December \quad\quad\quad\quad\quad\quad\quad\quad\text { October } \quad \text { November }\quad \text { December } October November December

Petal Co Reported the Following Information for 2016 $\quad\quad\quad\quad\quad\quad\quad\quad\text { October } \quad \text { November }\quad \text { December }$