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