Dragon makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collectedin the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $120,000,$160,000, and $220,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivablesbalance on July 31?August 31Receivable balanceAugust collection112,000124,000B112,000160,000174,000170,000D190,000154,000Some other combination notlisted hereO a. Choice AO b. Choice BO c. Choice CO d. Choice DOe.Choice EO Type here to search

Calculation of August Collections Sales % Amount Aug sales collections 220,000 30%…

Answered: ubject to the following collection…

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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ubject to the following collection pattern: 30% are- p are collected in the second month after sale. If sa ,what were the firm's budgeted collections for Au