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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

ekkarill92 answered 2 years ago
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