Lara Company has budgeted the following credit sales during the current year: September,$25,000; October,$36,000; November,$30,000; December,$32,000.Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale,60% in the first month after sale,and 20% in the second month after sale.What will be the balance in Accounts Receivable at the end of November assuming the payment patterns have been as described?
A) $26,600
B) $31,200
C) $33,800
D) $39,600
E) $25,200

Question

Quizplus · Accepted Answer

(.80 x $30,000) + (.20 x $36,000) = $31,200

Lara Company Has Budgeted the Following Credit Sales During the Current