The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $ 80,000 $ 85,000 January February March April May June $ 31,000 $ 26,000 $ 36,000 $ 110,000 Collections on sales: 55% in month of sale 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: $ 180,000 $ 200,000. $ 160,000 $ 111,000 $ 230,000 $ 50,000 30% in month following sale 15% in second month following sale The accounts receivable balance on January 1 of the current year was $68.000, of which $54.000 represents uncollected December sales and $14.000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
$ 80,000
$ 85,000
January
February
March
April
May
June
$ 31,000
$ 26,000
$ 36,000
$ 110,000
Collections on sales:
55% in month of sale.
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:
$ 180,000
$ 200,000.
$ 160,000
$ 111,000
$ 230,000
$ 50,000
30% in month following sale
15% in second month following sale
The accounts receivable balance on January 1 of the current year was $68.000, of which $54.000 represents uncollected December sales and $14,000
represents uncollected November sales.
What is the budgeted accounts receivable balance on May 31
Transcribed Image Text:The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $ 80,000 $ 85,000 January February March April May June $ 31,000 $ 26,000 $ 36,000 $ 110,000 Collections on sales: 55% in month of sale. 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: $ 180,000 $ 200,000. $ 160,000 $ 111,000 $ 230,000 $ 50,000 30% in month following sale 15% in second month following sale The accounts receivable balance on January 1 of the current year was $68.000, of which $54.000 represents uncollected December sales and $14,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 31
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