The following sales budget has been prepared: $$\begin{array} { l l l }
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\text { Septemb er } & \$ 99,000 & \$ 250,000 \
\text { October } & 225,000 & 180,000 \
\text { November } & 310,000 & 210,000 \
\text { December } & 94,000 & 170,000
\end{array}$$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. No uncollectible accounts are anticipated. is the expected balance of Accounts Receivable as of November 30.

Question

The following sales budget has been prepared: $$\begin{array} { l l l } 
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\text { Septemb er } & \$ 99,000 & \$ 250,000 \
\text { October } & 225,000 & 180,000 \
\text { November } & 310,000 & 210,000 \
\text { December } & 94,000 & 170,000
\end{array}$$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. No uncollectible accounts are anticipated. is the expected balance of Accounts Receivable as of November 30.

Quizplus · Accepted Answer

The expected balance of Accounts Receivable as of November 30 is $123,000. This is calculated as follows:Cash Sales in November = $310,000Credit Sales in November = $210,000Total Sales in November = $520,000Collections in November:50% of November sales = $260,00040% of October sales = $72,000Total collections in November = $332,000Accounts Receivable as of November 30:Total Sales in November - Total collections in November = $188,000Collections in December:10% of November sales = $21,00040% of October sales = $72,00050% of September sales = $125,000Total collections in December = $218,000Accounts Receivable as of November 30:$188,000 - $218,000 = $123,000

The Following Sales Budget Has Been Prepared Collections Are 50% in the Month of Sale, 40% in l