A company's accounts receivable balance at the end of December is $46,500, of which 16.50% is...

A company's accounts receivable balance at the end of December is $46,500, of which 16.50% is uncollected from December sales. The company's credit sales policy is as follows: 52.40% collected in the month of sale, 32.40% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November?

	$229,900
	$236,286
	$242,672
	$249,058
	$255,444

Expert Solution

Given that,
Accounts receivable ending Balance on December = $46500

Account receivable pertaining to December included in the Ending Balance = $46500 *16.50%
				= $7673

We know that,
Balance amount ($46500-7673 = $38827) is pertaining to the uncollected balance of November month.

Remaning percentage of Collection for the Month of November = 100 - 52.4 - 32.4
				= 15.2%

If total sales of November is "x"

Then,

x * 15.2% = $38827

x = $255444 (Aprroximately)

Therefore 5th option is the correct answer.

jeff jeffy answered 3 years ago

A company's accounts receivable balance at the end of December is $61,890, of which 19.20% is...

A company's accounts receivable balance at the end of December is $61,890, of which 19.20% is uncollected from December sales. The company's credit sales policy is as follows: 55.10% collected in the month of sale, 34.20% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November? Options: $432,305 $443,988 $455,672 $467,356 $479,040

A company's accounts receivable balance at the end of December is $60,180, of which 18.90% is...

A company's accounts receivable balance at the end of December is $60,180, of which 18.90% is uncollected from December sales. The company's credit sales policy is as follows: 54.80% collected in the month of sale, 34.00% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November? A) $413,979 B) $424,873 C) $435,768 D) $446,662 E) $457,556

11. A company's accounts receivable balance at the end of December is $68,730, of which 20.40%...

11. A company's accounts receivable balance at the end of December is $68,730, of which 20.40% is uncollected from December sales. The company's credit sales policy is as follows: 56.30% collected in the month of sale, 35.00% collected in the month immediately after the sale, with the remaining balance collected in the second month after the sale. How much were the total sales in November?

Crow Company’s Accounts Receivable balance is $120,000 as of December 31, 2019. At the end of...

Crow Company’s Accounts Receivable balance is $120,000 as of December 31, 2019. At the end of the period 4% of the accounts receivable is estimated to be uncollectible. Company uses percentage of receivables method for its doubtful receivables. REQUIRED: Compute the uncollectible accounts expense (bad debts expense) for 2019. Record the necessary adjusting entry (journal entry) as of December 31, 2019 for uncollectible receivables and show their effects on the financial statements (Income Statement for 2019 and Balance sheet as...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $420,000; allowance for uncollectible accounts at the beginning of the year, $31,000 (credit balance); credit sales during the year, $1,550,000; accounts receivable written off during the year, $22,000; cash collections from customers, $1,600,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the...

at the year end, Chief company has a balance of $16,000 in accounts receivable of which...

at the year end, Chief company has a balance of $16,000 in accounts receivable of which $1,600 is more than 30 days overdue. Chief has a credit balance of $160 in the allowance for doubtful accounts before any year-end adjustments. using the aging of accounts receivable method, Chief estimates that 1.5% of current accounts and 11% of accounts over 30 days are uncollectible. what is the amount of bad debt expense? a 232. b 392. c 552. d160.

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance...

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance in Allowance for Doubtful Accounts was $2,700. EZ Tech's sales in 2017 were $1,200,000, 70% of which were on credit. Collections on account during the year were $770,000. The company wrote off $5,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to...

At year-end, Chief Company has a balance of $26,000 in accounts receivable of which $2,600 is...

At year-end, Chief Company has a balance of $26,000 in accounts receivable of which $2,600 is more than 30 days overdue. Chief has a credit balance of $270 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1.0% of current accounts and 11% of accounts over thirty days are uncollectible. What is the amount of bad debt expense? $520 $790 $270 $250

At December 31, 2018 before any year-end adjustments, the Accounts Receivable balance of Daulat Inc is...

At December 31, 2018 before any year-end adjustments, the Accounts Receivable balance of Daulat Inc is $300,000. Credit sales for the 2018 are $900,000, and allowance for bad debt has a $10,000 beginning credit balance. Daulat Inc prepares the following aging schedule for accounts receivable (age, amount, estimated uncollectible) 0-30 Days $150,000 1% 31- 60 Days $100,000 4% 61 -90 Days $40,000 10% Over 90 Days $10,000 40% 1. Calculate the balance in the allowance for bad debt on December...

The projected balance of accounts receivable at the end of the first year of operations is?

A family friend, Mr. Burn Out availed of the early retirement scheme offered by his employer. He said that he was already tired of the same routine of spending eight full hours in an office doing the same thing for the last twenty years. Mr. Burn Out plans to get into the field of entrepreneurship. He would invest part of his retirement pay in a business that would deal with the sale of medical supplies to local clinics and hospitals....

Question