Problem: The director of budget of the store Flory' s Kitchen has prepared the following budget of sales. The business has balance of $100.000 in accounts receivable to January 1. The business normally charges the 100% of its accounts receivable in the following month for sale.
Sales January February March
Sales in effective $ 30,000 $ 66,000 $ 72,000
Sales on credit 90,000 120,000 140,000
Total sales budgeted $120,000 $186,000 $212,000
Relation of the cash received
Sales in current cash ? ? ?
More: Collection of accounts
receivable ? ? ?
Total collection of cash budgeted ? ? ?
Required to do:
A) Complete the blank spaces (?) of the table by the collections in cash. Which it is the total of incomes budgeted for the first trimester?
B) Determine the quantity of accounts receivable that Flory should report in the first quarter of the state of situation for form.