Question
In: Accounting
Cachet Inc. had a $93,000 balance in Accounts Receivable on July 1. In July, it expects...
Cachet Inc. had a $93,000 balance in Accounts Receivable on July 1. In July, it expects to collect 55% of these receivables and 30% of the July credit sales, which are budgeted at $138,000. What is the budgeted accounts receivable at the end of July? $41,400 $92,550 $138,450 $51,150
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Expert Solution
Answer---$138,450
Working.
|
Collections |
|
|
From June sales |
$ 51,150.00 |
|
From July sales |
$ 41,400.00 |
|
Total collections |
$ 92,550.00 |
|
Total accounts receivables |
||
|
Accounts receivables for |
||
|
June |
$ 93,000.00 |
|
|
Less: Collected in July |
$ 51,150.00 |
|
|
Balance from June Accounts receivables |
$ 41,850.00 |
|
|
July |
$ 138,000.00 |
|
|
Less: Collected in July |
$ 41,400.00 |
|
|
Balance from July Accounts receivables |
$ 96,600.00 |
|
|
Total accounts receivables |
$ 138,450.00 |
|
|
Alternative method |
|
|
Receivables from june |
$ 93,000.00 |
|
Add: Budgeted sales of july |
$ 138,000.00 |
|
Less: Total collections in july |
$ 92,550.00 |
|
Accounts receivables balane at the end of july |
$ 138,450.00 |
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