Richards Corporation has the following budgeted sales for the first half of next year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month.To this end, the following information has been assembled: The accounts receivable balance on January 1 is $70, 000.Of this amount, $60, 000 represents uncollected December sales and $10, 000 represents uncollected November sales. The total cash collected during January would be:

Question

Richards Corporation has the following budgeted sales for the first half of next year:  The company is in the process of preparing a cash budget and must determine the expected cash collections by month.To this end, the following information has been assembled:  The accounts receivable balance on January 1 is $70, 000.Of this amount, $60, 000 represents uncollected December sales and $10, 000 represents uncollected November sales. The total cash collected during January would be:

Quizplus · Accepted Answer

Cash collections for January:
 11eaa0c8_94ec_034e_9cb2_a55b0951006d_TB2487_00 *Accounts receivables representing December credit sales
= $60, 000 = (30% + 10%)× December credit sales
December credit sales = $60, 000 ÷ (30% + 10%)= $150, 000

Richards Corporation Has the Following Budgeted Sales for the First