Question: Lighthouse Company anticipates total sales for June and July of
Lighthouse Company anticipates total sales for June and July of $ 420,000 and $ 398,000, respectively. Cash sales are normally 60% of total sales. Of the credit sales, 20% are collected in the same month as the sale, 70% are collected during the first month after the sale, and the remaining 10% are collected in the second month. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31.
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