On March 31, 2013, Mikes Bike Shop had outstanding accounts receivable of $ 17,500. Mikes sales are

Question:

On March 31, 2013, Mike€™s Bike Shop had outstanding 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:

On March 31, 2013, Mike€™s Bike Shop had outstanding accounts

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?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...