ABC Enterprises has budgeted sales for the next four months as follows: Budgeted
ID: 2358777 • Letter: A
Question
ABC Enterprises has budgeted sales for the next four months as follows: Budgeted Sales in Units January 7,400 units February 3,900 units March 5,300 units April 4,600 units ABC's product sells for $20 each. Experiencse has shown that 10% of the company's sales are cash sales and 90% of the compamy's sales are made on account. The sale on account are collected in the pattern 30% in the month of sale, 55% in the month following sale, and 15% is collected in the second month following sale. Calculate Detmer's budgeted accounts receivable at April 30.Explanation / Answer
April = 90%*4600*20*70% + 90%*5300*20*15% (March 15% remains) = 72270