Piece of Pizza Company is preparing its master budget for its first year of business. It expects to sell 5,000 pizzas at $11 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate its accounts receivable balance at the end of its first month.
Piece of Pizza Company is preparing its master budget for its first year of business. It expects to sell 5,000 pizzas at $11 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate its accounts receivable balance at the end of its first month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION 3
Piece of Pizza Company is preparing its master budget for its first year of business. It
expects to sell 5,000 pizzas at $11 per pizza per month. It expects to collect 95% of the
sales in the month of the sale and 5% in the following month. Calculate its accounts
receivable balance at the end of its first month.
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