Question: On average, it takes 3 months before Wildhorse Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with

On average, it takes 3 months before Wildhorse Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40% paying the month after sale, and 35% paying their balance 2 months after the sale; the remaining 5% is considered uncollectible. Given Wildhorse's budgeted sales for the 4 months leading up to quarter- end, as shown below, determine the companys collectible (or net) A/R balance on September 30.

Budgeted sales :

June $48,900

July $44,500

August $51,800

September $63,000

A/R balance on September 30 : $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The system of Fig C11.4 is designed to deliver water at 20C from a sea-level reservoir to another through new cast iron pipe of diameter 38 cm. Minor losses are _K1 0.5 before...

On average, it takes 3 months before Oriole Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Swifty Corp. fully completes the collection cycle for its credit sales. All sales are made on account. with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Swifty Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Swifty Corp. fully completes the collection cycle for its credit sales. All sales are made on account. with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Crane Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Skysong Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 2 0 % of customers paying in the month of sale, 4 0 %...

On average, it takes 3 months before Vaughn Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 2 0 % of customers paying in the month of sale, 4 0 %...

On average, it takes 3 months before Swifty Corp. fully completes the collection cycle for its credit sales. All sales are made on account. with 20% of customers paying in the month of sale, 40%...

On average, it takes 3 months before Kim Corp. fully completes the collection cycle for its credit sales. All sales are made on account, with 2 0 % of customers paying in the month of sale, 4 0 %...

Winston Black was an audit partner in the firm of Henson, Davis & Company. He was in the process of reviewing the audit files for the audit of a new client, McMullan Resources. McMullan was in the...

Griffin Ltd is a major Australian manufacturer of women's clothing. One of its major competitors was Frank Ltd whose business was established by a French family over 30 years ago. It had won numerous...

A 1 % decline in yield will have the least effect on the price of a bond with a _ _ _ _ _ _ _ _ _ _ blank. Multiple Choice 1 0 - year maturity, selling at 8 0 2 0 - year maturity, selling at 8 0 2 0...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

5. Although not subject to judicial scrutiny, evidence in an arbitration hearing still has its complexities. Discuss related considerations that could be involved in an arbitration hearing involving...

2. Evidence in Disciplinary Cases. The OYEZ Project is a multimedia archive devoted to the Supreme Court of the United States and its work. According to the OYEZ Web site, it aims to be a complete...

3. Employment Discrimination. The Legal Information Institute at Cornell has an excellent Web site that allows for searching federal and state statutes and case law and provides additional Web links...