Kingston budgets total sales for June and July of $380,000 and $308,000, respectively. Cash sales are 70% of total safes. Of thecredit sales, 20% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 20% arecollected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgetedbalance sheet as of July 31. Hint Determine the percent of June and July sales that are uncollected at July 31As of July 31PercentUncollectedAmountUncollectedSales monthTotal SalesCredit SalesJune380,000July308,000Total

Step 1 Days' revenue uncollected is a liquidity ratio used to predict the amount of days it would…

Answered: As of July 31 Percent Uncollected…

As of July 31 Percent Uncollected Amount Uncollected Sales month Total Sales Credit Sales lune 380 000 July 308.000 Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Kingston budgets total sales for June and July of $380,000 and $308,000, respectively. Cash sales are 70% of total safes. Of the
credit sales, 20% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 20% 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
As of July 31
Percent
Uncollected
Amount
Uncollected
Sales month
Total Sales
Credit Sales
June
380,000
July
308,000
Total

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