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 = 0.53 × $120,000 + (0.28/0.47) × $32,000 + $45,000 - $32,000 = $95,663.83

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