Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $64,500, of which $21,000 is from November sales. Total sales for January and February are budgeted to be $107,000 and $127,000, respectively.

What are Boone Co.'s budgeted cash receipts for February?

Answer rating: 100% (QA)

Calculation of Budgeted Cash Receipts for February Cash Sales of F... View the full answer