Question

Shown below are the budgeted sales for ABC Company for the next
six months:

                   Sales for Cash     Sales on Account 
January               $15,000             $110,000
February              $18,000             $125,000
March                 $26,000             $119,000
April                 $24,000             $140,000
May                   $14,000             $ 88,000
June                  $18,000             $137,000

On average, 25% of the sales on account are collected in the month
of sale, 30% are collected in the month following sale, 35% are
collected in the second month following sale, and the remaining
10% is collected three months after the month of sale.

Calculate ABC Company's budgeted accounts receivable at June 30.

Answer 1

Budgeted Accounts Receivables Budget
	January	February	March	April	May	June	Total
Collection for January credit sales	$ 27,500.00	$ 33,000.00	$    38,500.00	$    11,000.00			$ 110,000.00
Collection for February credit sales		$ 31,250.00	$    37,500.00	$    43,750.00	$    12,500.00		$ 125,000.00
Collection for march credit sales			$    29,750.00	$    35,700.00	$    41,650.00	$    11,900.00	$ 119,000.00
Collection forApril credit sales				$   35,000.00	$    42,000.00	$    49,000.00	$ 126,000.00
Collection for May credit sales					$    22,000.00	$    26,400.00	$    48,400.00
Collection for June credit sales						$    34,250.00	$    34,250.00
	$ 27,500.00	$ 64,250.00	$ 105,750.00	$ 125,450.00	$ 118,150.00	$ 121,550.00	$ 562,650.00