Michael's Incorporated expect the following sales: Cash Credit $ 50,000 $ 150,000 $ 55,000 $ 170,000 $ 130,000 $ 24,000 $ 109,000 July August September October November $ 29,000 $ 34,000 $ 200,000 The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which Includes $55,000 of June's sales and $16,000 of May's sales. Compute the projected Accounts Receivable balance on November 30:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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July
August
Michael's Incorporated expect the following sales:
Credit
$ 150,000
$ 170,000
Cash
$ 50,000
$ 55,000
September
$ 29,000
$ 130,000
October
$ 24,000
$ 109,000
November
$ 34,000
$ 200,000
The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the
month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which
includes $55,000of June's sales and $16,000 of May's sales.
Compute the projected Accounts Receivable balance on November 30:
Multiple Choice
$115,800
$110,000
О
$131,800
$247,600
Transcribed Image Text:July August Michael's Incorporated expect the following sales: Credit $ 150,000 $ 170,000 Cash $ 50,000 $ 55,000 September $ 29,000 $ 130,000 October $ 24,000 $ 109,000 November $ 34,000 $ 200,000 The cash budget is being developed, and the accountant is computing the projected cash collections. He notices a pattern: 45% collected in the month of sale; 35% collected the next month; and 20% collected the following month. The Accounts Receivable balance on July 1 was $71,000, which includes $55,000of June's sales and $16,000 of May's sales. Compute the projected Accounts Receivable balance on November 30: Multiple Choice $115,800 $110,000 О $131,800 $247,600
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