Mimosa Company is putting together its budget for the first half of the coming year. Based on its history, the company expects 70% of its Sales to be on credit with the remaining in cash. Mimosa budgeted the following in total Sales per month:
|
January |
February |
March |
April |
May |
June |
| Sales |
$437,500 |
$250,000 |
$181,250 |
$162,500 |
$212,500 |
$187,500 |
As the company is preparing its schedule of cash collections for its treasury department, the following collection curve(schedule) is being used:
55% in the month of sale
30% in the month following sale
10% in the second month following sale
5% uncollectible
Q. What is the budgeted net accounts receivable balance on March 31 for Mimosa Company?