Ask Question
10 November, 15:47

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?

+2
Answers (1)
  1. 10 November, 15:51
    0
    Account receivable = $266,400

    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your 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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers