Use the information below to answer the following question(s).
Samson Company prepared the following purchases budget:
All purchases are paid for as follows: 20% in the month of purchase, 60% in the following month, and 20% two months after purchase.
-Atwood Lake Boats has budgeted sales for June and July at $420,000 and $480,000, respectively. Sales are 80% credit, of which 40% is collected in the month of sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?

Question

Use the information below to answer the following question(s).
Samson Company prepared the following purchases budget:
  All purchases are paid for as follows: 20% in the month of purchase, 60% in the following month, and 20% two months after purchase.
-Atwood Lake Boats has budgeted sales for June and July at $420,000 and $480,000, respectively. Sales are 80% credit, of which 40% is collected in the month of sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?

Quizplus · Accepted Answer

B) July 480,000 × 80% = 384,000 × 60% = $230,400

Use the Information Below to Answer the Following Question(s)