On March 31, 2013, Mike's Bike Shop had an outstanding accounts receivable of $19,000. Mike's sales are roughly evenly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the bike shop are given here:
Month Sales
January $17,000
February $22,000
March $27,000
April (projected) $33,000
a. Under these circumstances, what should the balance in accounts receivable be at the end of April?
b. How much cash did Mike's realize during April from sales and collections?