15 nits eBook Hint eferences QS 20-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for June and July of $390,000 and $308,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 25% are collected in the month of sale, 70% are collected during the first month after the sale, and the remaining 5% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. June July Total Sales month Total Sales Credit Sales $ 390,000 308,000 As of July 31 Percent Uncollected 5% Amount Uncollected
15 nits eBook Hint eferences QS 20-22 (Algo) Computing budgeted accounts receivable LO P2 Kingston budgets total sales for June and July of $390,000 and $308,000, respectively. Cash sales are 60% of total sales. Of the credit sales, 25% are collected in the month of sale, 70% are collected during the first month after the sale, and the remaining 5% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31. June July Total Sales month Total Sales Credit Sales $ 390,000 308,000 As of July 31 Percent Uncollected 5% Amount Uncollected
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please do not give solution in image format thanku
Transcribed Image Text:15
nits
eBook
Hint
eferences
QS 20-22 (Algo) Computing budgeted accounts receivable LO P2
Kingston budgets total sales for June and July of $390,000 and $308,000, respectively. Cash sales are 60% of total sales. Of the
credit sales, 25% are collected in the month of sale, 70% are collected during the first month after the sale, and the remaining 5% are
collected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgeted
balance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.
June
July
Total
Sales month
Total Sales Credit Sales
$ 390,000
308,000
As of July 31
Percent
Uncollected
5%
Amount
Uncollected
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education