Question

Laura Falk, Bramble & Hill Fabricators' accounts receivable manager, has just received the company's sales budget for the first quarter. January February $254.800 $496.860 March Quarter $445.900 $1,197,560 Budgeted revenue The company makes all sales on credit. Laura recently reviewed the company's collection history and found that 70% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 4% of sales are uncollectible. The company expects to have an accounts receivable balance of $53,235 on January 1, and this amount represents the remaining receivables from December's sales. Prepare Bramble & Hill's cash receipts budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter O.) Cash Receipts Budget January February March Total Cash Receipts Uncollectible December credit sales $ January sales February sales March sales Totals Determine the Net Accounts Receivable at the end of the quarter. Assume that there are no outstanding accounts receivable and allowance for doubtful accounts balances at the beginning of December for the prior year. Net Accounts Receivables Activate Windows Go to Settings to activate Windows.

Answer 1

	January	February	March	Total Cash Receipts	Uncollectible
December Credit sales	53,235			53,235	-
January Sales	178,360	66,248		244,608	10,192
February Sales		347,802	129,184	476,986	19,874
March Sales			312,130	312,130	17,836
Totals	231,595	414,050	441,314	1,086,959	47,902
Net Accounts Receivable		115,934
(445,900 x 26%)