Question

he following information pertains to the January operating budget for Casey Corporation. • Budgeted sales for January​ $207,000 and February​ $100,000. • Collections for sales are​ 60% in the month of sale and​ 40% the next month. • Gross margin is​ 35% of sales. • Administrative costs are​ $10,000 each month. • Beginning accounts receivable is​ $29,000. • Beginning inventory is​ $16,000. • Beginning accounts payable is​ $67,000. (All from inventory​ purchases.) • Purchases are paid in full the following month. • Desired ending inventory is​ 30% of next​ month's cost of goods sold​ (COGS). At the end of​ January, budgeted accounts receivable from January sales is​ ________.

Answer 1

the budgeted account receivable is $82,800

Step-by-step explanation:

The computation of the budgeted account receivable is shown below:

= Budgeted sales × next month sales collections percentage

= $207,000 × 40%

= $82,800

hence, the budgeted account receivable is $82,800'

We simply multiplied the budgeted sales with the next month collection sales percentage so that the budgeted account receivable could come