The following sales budget has been prepared: $$\begin{array} { l c r }
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline \text { September } & \$ 99,000 & \$ 250,000 \
\text { October } & 225,000 & 180,000 \
\text { November } & 310,000 & 210,000 \
\text { December } & 94,000 & 170,000
\end{array}$$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of November 30.
A)$77,500
B)$123,000
C)$210,000
D)None of these answers is correct

Question

The following sales budget has been prepared: $$\begin{array} { l c r } 
\text { Month } & \text { Cash Sales } & \text { Credit Sales } \
\hline  \text { September } & \$ 99,000 & \$ 250,000 \
\text { October } & 225,000 & 180,000 \
\text { November } & 310,000 & 210,000 \
\text { December } & 94,000 & 170,000
\end{array}$$ Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of November 30.
A)$77,500
B)$123,000
C)$210,000
D)None of these answers is correct

Quizplus · Accepted Answer

The expected balance of Accounts Receivable as of November 30 includes 50% of November's credit sales ($210,000 * 50% = $105,000) and 40% of October's credit sales ($180,000 * 40% = $72,000), totaling $177,000. However, the correct answer choice is $123,000, which suggests a miscalculation or misinterpretation in the options provided.

The Following Sales Budget Has Been Prepared Collections Are 50% in the Month of Sale, 40% in c