Pecan Corporation's budgeted March cash sales are $40,000 and budgeted credit sales are $260,000.
Pecan's budgeted accounts receivable balance was $65,000 at the beginning of March and $79,000
At the end of March. How much was Pecan's budgeted cash collections from customers during March?

Question

Quizplus · Accepted Answer

To calculate the budgeted cash collections from customers during March, we add the cash sales to the collections from credit sales. The collections from credit sales can be determined by analyzing the change in accounts receivable along with the credit sales. The beginning accounts receivable is $65,000, and the ending accounts receivable is $79,000, indicating an increase of $14,000 due to credit sales not yet collected. Therefore, the credit sales that were collected amount to $260,000 - $14,000 = $246,000. Adding the cash sales of $40,000 to this amount gives a total of $286,000 in budgeted cash collections from customers during March.

Pecan Corporation's Budgeted March Cash Sales Are $40,000 and Budgeted