Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: $\begin{array}{lccc}
\text { Sales Budget } & \text { April } & \text { May } & \text { June } \
\text { Cash sales } & 30,000 & 43,000 & 55,000 \
\text { Sales on account } & \underline{ 370,000 }& \underline{432,000 }& \underline{ 405,000}\
& \underline{400,000}& \underline{475,000}& \underline{460,000}
\end{array}$

- Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale.
What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?

Question

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: $\begin{array}{lccc}
\text { Sales Budget } & \text { April } & \text { May } & \text { June } \
\text { Cash sales } & 30,000 & 43,000 & 55,000 \
\text { Sales on account } & \underline{ 370,000 }&  \underline{432,000 }& \underline{ 405,000}\
& \underline{400,000}& \underline{475,000}& \underline{460,000}
\end{array}$

- Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale.
What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?

Quizplus · Accepted Answer

The ending accounts receivable balance is the sum of the uncollected sales on account from April, May, and June.April sales on account: $370,000 x 30% = $111,000May sales on account: $432,000 x 30% = $129,600June sales on account: $405,000 x 30% = $121,500Ending accounts receivable balance: $111,000 + $129,600 + $121,500 = $362,100

Bright Minds Toy Company Prepared the Following Sales Budget for the Second