Question

Stickel Company has the following sales​ budget: Month Cash Sales Credit Sales September ​$100,000 ​$200,000 October ​125,000 ​190,000 November ​207,000 ​199,000 December ​67,000 ​133,000 Collection of credit sales are​ 50% in the month of​ sale, 40% in the month following​ sale, and​ 10% two months following sale. No uncollectible accounts are expected. What is the expected balance of Accounts Receivable at October​ 31?

Answer 1

Answer:

$182300

Explanation:

$182300

September credit sales  account for 40% of October accounts receivable since it will be paid one month following sales

October credit sales will account for 50% of account receivable since it is paid in the month of sale

the calculation has been done in the attachment for further explanation

     

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