Question

Kuzma​ Foods, Inc. has budgeted sales for June and July at $ 670 comma 000 and $ 740 comma 000​, respectively. Sales are 90​% ​credit, of which 60​% is collected in the month of sale and 40​% is collected in the following month. What is the budgeted Accounts Receivable balance on July​ 31?

Answer 1

Account receivable= $266,400

Step-by-step explanation:

Giving the following information:

Sales:

June= $670,000

July= $740,000

Sales are 90​% ​credit, of which 60​% is collected in the month of sale and 40​% is collected in the following month.

On July 31, sales on account from June are technically collected. Sales on account pertain to July.

Account receivable:

From July= (740,000*0.9)*0.4= $266,400