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:
 11eaa3fe_3275_739c_908b_e1c2476b6e52_TB2461_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