A firm has forecasted sales of $4,500 in April, $3,000 in May, and $5,000 in June. All sales are on credit. 30% is collected in the month of the sale, and the remainder in the following month. What will be the balance in accounts receivable at the end of June?
A) $1,950
B) $6,500
C) $4,550
D) $3,500

Question

Quizplus · Accepted Answer

At the end of June, the accounts receivable will include 70% of June sales ($5,000 * 0.7 = $3,500) since these will be collected in July.

A Firm Has Forecasted Sales of $4,500 in April, $3,000