Question

Laura Falk, Bates & Hill Fabricators’ accounts receivable manager, has just received the company’s sales budget for the first quarter (see Exercise 5-8). The company makes all sales on credit. Laura recently reviewed the company’s collection history and found that 70% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 4% of sales are uncollectible. The company expects to have an accounts receivable balance of $58,500 on January 1, and this amount represents the remaining receivables from December’s sales.

Required
Prepare Bates & Hill’s cash receipts budget for the fi rst quarter.



$1.99
Sales4
Views202
Comments0
  • CreatedFebruary 21, 2014
  • Files Included
Post your question
5000