Gold Corporation has the following sales budget for the last six months of 2019: July August $200,000 October $180,000 160,000 November 200,000 September 220,000 December 188,000 Historically, the cash collection of sales has been as follows: 60 percent of sales collected in month of sale, 30 percent of sales collected in the month following the sale, 8 percent of sales collected in second month following the sale, and 2 percent of sales is uncollectable. What is the ending balance of accounts receivable at the end of September assuming the uncollectible balance is written off in the third month after the sale? A) $199,000 B) $108,000 C) $104,000 D) $93,000

Gold Corporation has the following sales budget for the last six months of 2019: July August $200,000 October $180,000 160,000 November 200,000 September 220,000 December 188,000 Historically, the cash collection of sales has been as follows: 60 percent of sales collected in month of sale, 30 percent of sales collected in the month following the sale, 8 percent of sales collected in second month following the sale, and 2 percent of sales is uncollectable. What is the ending balance of accounts receivable at the end of September assuming the uncollectible balance is written off in the third month after the sale? A) $199,000 B) $108,000 C) $104,000 D) $93,000

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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