A company budgets sales of $502,000 for April and $350,000 for May. Credit sales are 75%...

Transcribed Image Text:

A company budgets sales of $502,000 for April and $350,000 for May. Credit sales are 75% of total sales. Credit sales are collected as follows: 20% in the month of sale, 65% in the first month after sale, and 15% in the second month after sale. Compute the accounts receivable balance at May 31. Hint. At May 31, determine the percent of April and May sales that are not yet collected. Accounts receivable at May 31 Sales month Total Sales Credit Sales Percent not yet collected Amount not yet collected April May $ 502,000 350,000 A company budgets sales of $502,000 for April and $350,000 for May. Credit sales are 75% of total sales. Credit sales are collected as follows: 20% in the month of sale, 65% in the first month after sale, and 15% in the second month after sale. Compute the accounts receivable balance at May 31. Hint. At May 31, determine the percent of April and May sales that are not yet collected. Accounts receivable at May 31 Sales month Total Sales Credit Sales Percent not yet collected Amount not yet collected April May $ 502,000 350,000