The LaGrange Corporation had the following budgeted sales for the first half of the current...
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Accounting
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales
Credit Sales
January
$ 90,000
$ 190,000
February
$ 95,000
$ 210,000
March
$ 30,000
$ 170,000
April
$ 25,000
$ 110,000
May
$ 35,000
$ 240,000
June
$ 120,000
$ 40,000
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 $50,000 represents uncollected December sales and $15,000 represents uncollected November sales.
What is the budgeted accounts receivable balance on May 31?
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