Gourmet Cookware makes all sales on credit with 60% of the payment being received in the month of sale, 30% in the month following sale and the remaining 10% in the subsequent month.
Budgeted sales are as follows
January $100 000
February $140 000
March $120 000
The budgeted balance of debtors at 31 March is:

Question

Quizplus · Accepted Answer

The balance of debtors at 31 March includes 30% of March sales ($120,000 * 30% = $36,000) and 10% of February sales ($140,000 * 10% = $14,000), totaling $50,000.

Gourmet Cookware Makes All Sales on Credit with 60% of the Payment