Towing Company has budgeted sales for the next six months as follows:

On average, 32% of the sales on account are collected in the month of  sale, 40% are collected in the month following sale, 16% are collected  in the second month following sale, 8% are collected in the third month  following sale, and the remaining 4% is collected four months after the  month of sale.
Calculate Towing Company's budgeted accounts receivable at October 31. 

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May June July August September October Sales for Cash $42,000 $37,000 $29,000 $48,000 $52,000 $45,000 Sales on Account $257,000 $243,000 $238,000 $296,000 $251,000 $263,000 May June July August September October Sales for Cash $42,000 $37,000 $29,000 $48,000 $52,000 $45,000 Sales on Account $257,000 $243,000 $238,000 $296,000 $251,000 $263,000

Answer rating: 100% (QA)

a Cash sales From May credit sale 257000 x 3 From June credit sales 243000 x 9 From July credit sal... View the full answer