Question 7

Question 7 View Policies Current Attempt in Progress Laura Falk, Crane & Hill Fabricators' accounts receivable manager, has just received the company's sales budget for the first quarter. January February March Quarter Budgeted revenue $154,000 $300,300 $269,500 $723,800 The company makes all sales on credit. Laura recently reviewed the company's collection history and found that 70% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 4% of sales are uncollectible. The company expects to have an accounts receivable balance of $40,950 on January 1, and this amount represents the remaining receivables from December's sales. Prepare Crane & Hill's cash receipts budget for the first quarter. (Round answers to decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter O.) Cash Receipts Budget January February March Total Cash Receipts Uncollectible December credit sales $ January sales February sales March sales Totals Determine the Net Accounts Receivable at the end of the quarter. Assume that there are no outstanding accounts receivable and allowance for doubtful accounts balances at the beginning of December for the prior year. Net Accounts Receivables