The Khaki Corporation has the following budgeted sales data: The regular pattern of collection of credit sales is 40% in the month of sale, 50% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on February 28 would be:
A)$250,000
B)$210,000
C)$175,000
D)$215,000

Question

The Khaki Corporation has the following budgeted sales data:  The regular pattern of collection of credit sales is 40% in the month of sale, 50% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on February 28 would be:
A)$250,000 
B)$210,000 
C)$175,000 
D)$215,000

Quizplus · Accepted Answer

The Answer of The Khaki Corporation has the following budgeted sales data:  The regular pattern of collection of credit sales is 40% in the month of sale, 50% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted accounts receivable balance on February 28 would be:
A)$250,000 
B)$210,000 
C)$175,000 
D)$215,000

The Khaki Corporation Has the Following Budgeted Sales Data