Michael's Incorporated expect the following sales: Cash Credit $ 50,000 $ 150,000 $ 55,000 $ 170,000 $ 130,000 $ 24,000 $ 109,000 July August September October November $ 29,000 $ 34,000 $ 200,000 The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which Includes $55,000 of June's sales and $16,000 of May's sales. Compute the projected Accounts Receivable balance on November 30:

Michael's Incorporated expect the following sales: Cash Credit $ 50,000 $ 150,000 $ 55,000 $ 170,000 $ 130,000 $ 24,000 $ 109,000 July August September October November $ 29,000 $ 34,000 $ 200,000 The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which Includes $55,000 of June's sales and $16,000 of May's sales. Compute the projected Accounts Receivable balance on November 30:

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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