XYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $45. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ Company is preparing its budgeted balance sheet. The budgeted selling
price per unit is $45. Budgeted unit sales for July, August, September, October
and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200
units, respectively. All sales are on credit. Regarding credit sales, 30% are
collected in the month of the sale, 50% in the month following sales, and the
remaining 20% in the second month following sale. The budgeted accounts
receivable balance at the end of September is closest to:
Select one:
O a. None of the given answers
O b. $140,000
O c. $126,000
O d. $154,000
O e. $96,750
Transcribed Image Text:XYZ Company is preparing its budgeted balance sheet. The budgeted selling price per unit is $45. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The budgeted accounts receivable balance at the end of September is closest to: Select one: O a. None of the given answers O b. $140,000 O c. $126,000 O d. $154,000 O e. $96,750
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