Kingston budgets total sales for June and July of $520,000 and $488,000, respectively. Cash sales are 70% of total sales. Of the credit sales, 15% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 25% 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. Sales month Total Sales June July Total $ 520,000 488,000 Credit Sales As of July 31 Percent Uncollected Amount Uncollected

Kingston budgets total sales for June and July of $520,000 and $488,000, respectively. Cash sales are 70% of total sales. Of the credit sales, 15% are collected in the month of sale, 60% are collected during the first month after the sale, and the remaining 25% 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. Sales month Total Sales June July Total $ 520,000 488,000 Credit Sales As of July 31 Percent Uncollected Amount Uncollected

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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