Petal Co. reported the following information for 2019: $\begin{array}{llll}&\text { October }& \text { November }& \text { December }\
\text { Budgeted sales } & \$ 930,000 & \$ 870,000 & \$1,080,000 \
\end{array}$ All sales are on credit.

-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2019 budgeted Accounts Receivable?

Question

Petal Co. reported the following information for 2019: $\begin{array}{llll}&\text { October }& \text { November }& \text { December }\
\text { Budgeted sales } & \$ 930,000 & \$ 870,000 & \$1,080,000 \
\end{array}$ All sales are on credit.

-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2019 budgeted Accounts Receivable?

Quizplus · Accepted Answer

The November 30, 2019 budgeted Accounts Receivable consists of 50% of November sales that will be collected in December. Therefore, it is 50% of $870,000, which equals $435,000.

Petal Co Reported the Following Information for 2019 All Sales Are on Credit