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Solution Library
Calculation Of Accounts Receivable At The End Of Month
Question
If the actual December 31st A/R balance was $12,000; projected sales in March are $50,000; 70% of sales are on credit; 60% of credit sales are collected in the month of sale and 40% are collected in the month after the sale, what is the projected A/R balance on the pro forma balance sheet for the end of March?
a). $26,000
b). $14,000
c). $20,000
d). $35,000
Summary
The question belongs to Accounting and it discusses about calculation of accounts receivable at the end of month.
Total Word Count 30
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