Question: On March 31 2013 Mike s Bike Shop had outstanding accounts

On March 31, 2013, Mike’s Bike Shop had outstanding accounts receivable of $ 17,500. Mike’s sales are roughly evenly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the bike shop are given here:
a. Under these circumstances, what should the balance in accounts receivable be at the end of April?
b. How much cash did Mike’s realize during April from sales and collections?

  • CreatedSeptember 11, 2015
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