The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,500. Firm sales were roughly evenly split between credit and cash sales, with 40 percent of the credit sales collected in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the brewing company are given here:
SALES MONTH SALES
$15,000 March $25,000
$20,000 April (projected) $30,000
a. Under these circumstances, what should the balance in accounts receivable be at the end of April? _____$
b. How much cash did Pastors' realize during April from sales and collections? _____$