Calculation Of Accounts Receivable At The End Of Month

Question

If the actual December 31^st 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