What is the ending accounts receivable balance that would be reported on the pro forma balance sheet prepared as of June 30?
A) $164,700
B) $121,500
C) $283,500
D) $86,400

Question

Quizplus · Accepted Answer

Budgeted accounts receivable balance on June 30 = (May credit sales x Percent uncollected)+ (June credit sales x Percent uncollected)
Budgeted accounts receivable balance on June 30 = [$432,000 x (100% - 70% - 20%)] + [$405,000 x (100% - 70%)= $43,200 + $121,500 = $164,700

What Is the Ending Accounts Receivable Balance That Would Be