The LaGrange Company had the following budgeted sales for the first half of the current year: Credit Sales $340,000 $190,000 $135,000 $120,000 $160,000 $140,000 Cash Sales $70,000 $50,000 $40,000 $35,000 $45,000 $40,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. 2. What is the budgeted accounts receivable balance on June 1 of the current year? $ 56,000. $ 64,000. $ 76,000. $132,000. A)

The LaGrange Company had the following budgeted sales for the first half of the current year: Credit Sales $340,000 $190,000 $135,000 $120,000 $160,000 $140,000 Cash Sales $70,000 $50,000 $40,000 $35,000 $45,000 $40,000 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. 2. What is the budgeted accounts receivable balance on June 1 of the current year? $ 56,000. $ 64,000. $ 76,000. $132,000. A)

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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