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COTB MC Qu. 8-31 (Static) Assume a company is preparing a... Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $50,000 and $60,000, respectively. The company expects to collect 40% of its credit sales in the month of the sale and the remaining 60% in the following month. What amount of accounts receivable would the company report in its balance sheet at the end of the second month

Respuesta :

Answer:

$36,000

Explanation:

The computation of the amount of the account receivable that should be reported at the end of the second month is shown below;

= Credit sales of the second month × following month percentage

= $60,000 × 0.60

= $36,000

By multiplying the credit sales of the second month with the following month percentage, the amount of the account receivable could come

Hence, the same would be relevant

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