Question

Mitchell Company had the following budgeted sales for the last half of last year:Assume that the accounts receivable balance on July 1 was $75,000. Of this amount, $60,000 represented

uncollected June sales and $15,000 represented uncollected May sales. Given these data, the total cash
collected during July would be:
A. $150,000
B. $235,000
C. $215,000
D. $200,000

Answer 1

The total cash collected during July would be $0.

Step-by-step explanation:

To determine the total cash collected during July, we need to calculate the amount of cash collected from sales made in June and May. From the given data, we know that $60,000 represented uncollected June sales and $15,000 represented uncollected May sales. Therefore, the total cash collected during July would be $75,000 (accounts receivable balance on July 1) - $60,000 (uncollected June sales) - $15,000 (uncollected May sales) = $0.