Rocha & Noel Company, an importer and retailer of Polish ceramics and kitchenware, prepares a monthly master budget. The data for the July master budget is given below:

The balance for June 30 is presented below.

Money	$35,000	Accounts payable	$55,000
accounts receivable	120,000	Capital social	320,000
Inventory	56,000	Retained earnings	96,000
Building and equipment (net)	260,000

Actual sales for June and budgeted sales for July, August, and September are given below.

June	$147,500
July	370,000
August	420,000
September	330,000

Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. There are no bad debts.

The gross margin percentage is 45% of sales. The desired ending inventory is equal to 30% of the following month's sales. A quarter of the purchases are paid in the month of purchase and the rest are purchased on account and paid in full the following month.

Monthly cash operating expenses are $45,000 and monthly depreciation expenses are $7,500.

What is the accounts receivable balance at the end of July?

Answer rating: 100% (QA)

Lets start by calculating the budgeted sales for credit and cash for July Credit sales 70 x 370000 2... View the full answer