The following is the sales budget for Duck-n-Run, Inc., for the first quarter of 2012: The accounts receivable balance at the end of the previous quarter was $45,000 ($32,000 of which was uncollected December sales.) What is the amount of the January collections?

Question

The following is the sales budget for Duck-n-Run, Inc., for the first quarter of 2012:  The accounts receivable balance at the end of the previous quarter was $45,000 ($32,000 of which was uncollected December sales.) What is the amount of the January collections?

Quizplus · Accepted Answer

January collections = 0.67 F1F1F1S1F1F1F10 $120,000 + (0.23/0.33) F1F1F1S1F1F1F10 $32,000 + $45,000 - $32,000 = $115,703.03

The Following Is the Sales Budget for Duck-N-Run, Inc