Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 41

For the following questions, circle the best response.

Dax, Inc., collects its accounts receivable as follows: 30% in the month of sale, 60% in the next month, and 8% in the second month after the sale; 2% are uncollectible. Budgeted sales for the next four months are March, $16,000; April, $22,000; May, $19,000; and June, $23,000. Budgeted collections for June are

a. $20,060.

b. $20,380.

c. $21,260.

d. $21,380.