Problem 1: January February March Total Cash Sales 50,000 60,000 40,000 150,000 Credit Sales 450,000 540,000 360,000

Problem 1:

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January February March Total Cash Sales 50,000 60,000 40,000 150,000 Credit Sales 450,000 540,000 360,000 1,350,000 Total Sales 500,000 600,000 400,000 1,500,000 The company is in the process of preparing a master budget and must determine the accounts receivable at the end of March. To this end, the following information has been assembled: Collections on credit sales: 40% in month of sale 50% in month following sale 10% in second month following sale The accounts receivable at the end of March is: a. $350,000. b. $320,000. c. $261,000. d. $383,000. e. None of the above. January February March Total Cash Sales 50,000 60,000 40,000 150,000 Credit Sales 450,000 540,000 360,000 1,350,000 Total Sales 500,000 600,000 400,000 1,500,000 The company is in the process of preparing a master budget and must determine the accounts receivable at the end of March. To this end, the following information has been assembled: Collections on credit sales: 40% in month of sale 50% in month following sale 10% in second month following sale The accounts receivable at the end of March is: a. $350,000. b. $320,000. c. $261,000. d. $383,000. e. None of the above.

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