Carruthers Company expects the following total sales: Month Sales March $21,000 April $11,000 May $33,000 June $16,000 The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The budgeted accounts receivable balance on May 31 is: A. $15,240 B. $24,750 C. $17,325

Carruthers Company expects the following total sales: Month Sales March $21,000 April $11,000 May $33,000 June $16,000 The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 69% in the month following the sale with the remainder being uncollectible and written off. The budgeted accounts receivable balance on May 31 is: A. $15,240 B. $24,750 C. $17,325

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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