Answer:
The answer is $ <em>$250,000 </em>
Explanation:
<em>From the question given, we find the budgeted accounts receivable balance at the end of February </em>
<em>Recall from the table,</em>
<em>The Khaki cooperation has the following data sales budgeted</em>
<em> January February March April</em>
<em>Cash sales.... $70,000 $90,000 $80,000 $70,000</em>
<em>Credit sales... $400,000 $350,000 $300,000 $320,000</em>
<em />
<em>The budgeted accounts receivables would be in agreement of the balance amount (10%) for January credit sales will remain undone at the end of February and 60% of the February credit sales. </em>
<em>The formula for calculating the budgeted accounts receivable on February ending can be derived as follows:
</em>
<em>
We apply the formula for budgeted accounts receivable on February ending as :</em>
<em>The Accounts Budgeted Receivable (February ending) = January Credit Sales x 10% + February Credit Sales x 60%
</em>
<em>Now,</em>
<em>From the information gotten above, we now have</em>
<em>Budgeted Accounts Receivable (February ) = 400,000 x 10% + 350,000 x 60% = $250,000 </em>
<em>It is important to note that,</em>
<em>At the month of January out of the credit sales of $400,00 , 40% will be taken in January itself and 50% will get taken in February. The balance 10% will remain unresolved at February ending.</em>
<em>Also for the month of February, out of the credit sales of $350,000 ,40% will be taken or received in February, and the remainder of 60% will still be at the end of February.</em>
<em>
</em>
<em />