Problem:
Jessich, Inc management estimates that 39% of credit sales will be collected in the month of sale with a 2% prompt payment discount taken. The remainder of credit sales will be collected the following month. Last month Jessich, Inc had $402,553 in cash sales and $637,799 in credit sales. This month, Jessich, Inc expects cash sales of $518,380 and credit sales of 648,562.
Required:
Question: What is the estimated the balance in ending accounts receivable this month?
Note: Be sure to show how you arrived at your answer.