Kallsen Enterprises, in its first year of operations, has provided the following estimated sales information: Month One

Question:

Kallsen Enterprises, in its first year of operations, has provided the following estimated sales information:

Month One .............................................................. $ 150,000

Month Two ............................................................. 160,000

Month Three ............................................................ 170,000

Based on past experience with similar companies, the manager believes that 55 percent of sales will be collected in the month of sale while the remaining 45 percent will be collected in the month following the sale. What is the expected accounts receivable balance each month?

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...