Lakewood Jet Skis has budgeted sales for June and July at $ 420 comma 000 and $ 510 comma 000 , respectively. Sales are 75 % credit, of which 30 % is collected in the month of the sale and 70 % is collected in the following month. What is the accounts receivable balance on July 31?

A. $189,000B. $288,000C. $216,000D. $360,000

Question

Jaylyn

Business

1 May, 11:54

Lakewood Jet Skis has budgeted sales for June and July at $ 420 comma 000 and $ 510 comma 000 , respectively. Sales are 75 % credit, of which 30 % is collected in the month of the sale and 70 % is collected in the following month. What is the accounts receivable balance on July 31?

A. $189,000B. $288,000C. $216,000D. $360,000

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Answers (1)

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Ronnie Casey · Answer 1

All options are incorrect for given values

Correct answer is $267,750

Explanation:

Provided Budgeted sales for the month of

Month Sales Credit 75% Collected in month 30% Bal 70%

June = $420,000 $315,000 $94,500 $220,500

July = $510,000 $382,500 $114,750 $267,750

Accounts receivable balance on 31 July will be only 70% of credit Sales of July.

Thus Amount of Accounts Receivables Balance on July 31 = $267,750