Managerial Accounting: Schedule of Collections from Sales?
Razz Company is estimating the following sales: July ......................... $45,000 August .................... $50,000 September .............. $65,000 October ................... $80,000 November ............... $75,000 December ............... $60,000 Sales at Razz are normally collected as follows: 10% in the month of sale; 60% in the month following the sale; and the remaining 30% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown? A) $49,500 B) $76,500 C) $120,500 D) $135,500 The answer is B but i don't know how to calculate it. Pls help me, thanks :D
TELL US , if you have any answer