Verns makes all sales on account and has the following, Ask an Expert

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Vern's makes all sales on account, and has the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. Sales for the last quarter of the year are budgeted as follows:

October $70,000
November $60,000
December $50,000

What should be the budgeted receivables balance on December 31?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M977391

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