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

To find the amount of January collections, we need to subtract the uncollected December sales from the accounts receivable balance and then add up the sales for January:

Accounts receivable balance: $45,000
Uncollected December sales: $32,000
Accounts receivable balance after subtracting uncollected December sales: $13,000

January sales: $85,000
Amount of January collections: $13,000 + $85,000 = $98,000

Therefore, the best choice is C, which is the closest option to $98,000.

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