Acme Company's budgeted monthly sales are as follows: September $617,000, October $892,000, November $750,000, and December $710,000. Sales are collected 15% in the month of sale, 65% in the month following the sale, and the remaining 20% in the second month following the sale. What is the budgeted accounts receivable balance on December 31? O $607,500 O $680.500 O $716,500 $753,500 O None of the above

Acme Company's budgeted monthly sales are as follows: September $617,000, October $892,000, November $750,000, and December $710,000. Sales are collected 15% in the month of sale, 65% in the month following the sale, and the remaining 20% in the second month following the sale. What is the budgeted accounts receivable balance on December 31? O $607,500 O $680.500 O $716,500 $753,500 O None of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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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

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Acme Company's budgeted monthly sales are as follows: September $617,000, October $892,000,
November $750,000, and December $710,000. Sales are collected 15% in the month of sale, 65% in
the month following the sale, and the remaining 20% in the second month following the sale. What
is the budgeted accounts receivable balance on December 31?
O $607.500
$680,500
O $716,500
$753,500
O None of the above

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