Mitchell Company had the following budgeted sales for the last half of last year: ...
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Accounting
Mitchell Company had the following budgeted sales for the last half of last year:
Cash Sales
Credit Sales
July
$70,000
$170,000
August
$75,000
$190,000
September
$54,000
$150,000
October
$59,000
$154,000
November
$69,000
$220,000
December
$100,000
$440,000
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 credit sales:
40% in month of sales
30% in month of following sales
30% in second month following sales
What is the budgeted accounts receivable balance on December 1?
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