Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is S105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to: A) $525,000 B) $315,000 C) $472.500 D) $787,500

Question

Business

Tobias Barnett

12 September, 17:36

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is S105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to: A) $525,000 B) $315,000 C) $472.500 D) $787,500

+2

Answers (1)

Know the Answer?

Aspen Newton · Answer 1

The correct answer is C.

Explanation:

Giving the following information:

Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.

Selling price = $105

Accounts receivable balance (August) = (7500*105) * 0.4 = $472,500