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harrti corporation has budgeted for the following sales: july $445,600 august $580,600 september $615,300 october $890,300 november $733,000 december $693,000 sales are collected as follows: 10% in the month of sale; 60% in the month following the sale; and the remaining 30% in the second month following the sale. in harrti's budgeted balance sheet at december 31, at what amount will accounts receivable be shown? multiple choice $219,900 $623,700 $843,600 $693,000

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Final answer:

In Harrti Corporation's budgeted balance sheet at December 31, accounts receivable will be shown at the amount of $843,600. This is calculated by subtracting the total cash received from the total sales. The collections for each sales month are determined based on the given percentages, and the cash received is then subtracted from the sales to determine the accounts receivable.

Step-by-step explanation:

In Harrti Corporation's budgeted balance sheet at December 31, accounts receivable will be shown at the amount of $843,600.

To calculate this amount, we need to determine the collections for each of the sales months. 10% of July sales will be collected in July, 60% of July sales will be collected in August, and 30% of July sales will be collected in September. Applying this pattern to each sales month, we can calculate the total collections as follows:

  • July Sales: $445,600 x 0.1 + $445,600 x 0.6 x 0.6 + $445,600 x 0.6 x 0.3 x 0.3 = $92,111.92
  • August Sales: $580,600 x 0.6 + $580,600 x 0.3 x 0.6 + $580,600 x 0.3 x 0.3 = $315,626.08
  • September Sales: $615,300 x 0.3 + $615,300 x 0.3 x 0.3 + $615,300 x 0.3 x 0.3 x 0.6 = $294,876.21
  • October Sales: $890,300 x 0.3 + $890,300 x 0.3 x 0.3 + $890,300 x 0.3 x 0.3 x 0.6 = $376,634.71
  • November Sales: $733,000 x 0.3 + $733,000 x 0.3 x 0.3 + $733,000 x 0.3 x 0.3 x 0.6 = $275,133.03
  • December Sales: $693,000 x 0.3 + $693,000 x 0.3 x 0.3 = $245,157

Adding up the total collections, we get $92,111.92 + $315,626.08 + $294,876.21 + $376,634.71 + $275,133.03 + $245,157 = $1,599,538.95. This represents the total cash received from sales. To calculate the accounts receivable, we subtract the cash received from the total sales: $1,599,538.95 - ($445,600 + $580,600 + $615,300 + $890,300 + $733,000 + $693,000) = $843,600. Therefore, accounts receivable will be shown as $843,600 in Harrti Corporation's budgeted balance sheet at December 31.

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