Question

ZZ, Inc. has budgeted sales in units for the next six months as follows:

                  Budgeted Sales in Units
July                    7,700 units                             
August                  8,300 units
September               5,400 units
October                10,200 units
November               ?????? units
December               11,700 units

The selling price is $18 per unit. 30% of the company's sales are cash
sales and 70% of the company's sales are made on account. The sales on
account are collected in the pattern 15% in the month of sale, 20% in
the month following sale, 55% in the second month following sale, and
the final 10% is collected in the third month following sale.

ZZ, Inc. reported a budgeted accounts receivable balance of $194,670
in its pro forma balance sheet at December 31.

Calculate the number of units budgeted to be sold in November. Do not
type the word units after your answer.

Answer 1

Accounts receivable balance	194670
Less: October sales uncollected	12852	=10200*18*70%*10%
Less: December sales uncollected	125307	=11700*18*70%*85%
November sales uncollected	56511
Percentage of November sales uncollected	65%	=55%+10%
Credit sales fo November	86940	=56511/65%
Total sales for November	124200	=86940/70%
Number of units budgeted to be sold in November	6900	=124200/18

Answer 2

Budgeted accounts receivable	194670
Less: Uncollected October sales	12852	=10200*18*70%*10%
Less: Uncollected December sales	125307	=11700*18*70%*85%
Uncollected November sales	56511
Uncollected November sales percentage	65%
November credit sales	86940	=56511/65%
November Total sales	124200	=86940/70%
Number of units budgeted to be sold in November	6900	=124200/18