May The LaGrange Corporation had the following budgeted...
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Accounting
May The LaGrange Corporation had the following budgeted sales for the first half of the current year. Cash Sales Credit Sales January $ 70,000 $ 170,000 February $ 75,000 $ 190,000 March $ 27,000 $ 150,000 April $ 22,000 $ 107,000 $ 32,000 $ 220,000 June $ 100,000 $ 10,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 50% in month of sale 40% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $65,000, of which $47,000 represents uncollected December sales and $18,000 represents uncollected November sales What is the budgeted accounts receivable balance on May 317 Multiple Choice $102,700 $110,000 $120.700 $223.400
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