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Budgeted Cash Receipts, Budgeted Accounts Receivable

Use the following to answer the questions:

The Kafusi Company has the following budgeted sales:

April May June July
Credit Sales $320,000 $300,000 $350,000 $400,000
Cash Sales $70,000 $80,000 $90,000 $70,000

The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

1.
The budgeted cash receipts for July would be:
A. $400,000
B. $430,000
C. $435,000
D. $390,000

2.
The budgeted accounts receivable balance on May 31 would be:
A. $210,000
B. $212,000
C. $180,000
D. $242,000

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Answers:

1
The budgeted cash receipts for July would be:
A. $400,000
B. ...

Solution Summary

The solution calculates Budgeted Cash Receipts and Budgeted Accounts Receivable.

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