The budgeted accounts receivable balance on September 30 would be:

A) $126,000
B) $148,000
C) $166,000
D) $190,000

Question

The budgeted accounts receivable balance on September 30 would be:A) $126,000B) $148,000C) $166,000D) $190,000

Nicholle Truax · Accepted Answer

Final Answer : C, Explanation :  To determine the budgeted accounts receivable balance on September 30, we need to first calculate the total sales made in September.Total sales = $140,000 + $90,000 + $120,000 = $350,000Then we need to calculate the portion of sales made on credit, which is 60% of total sales:Credit sales = 60% x $350,000 = $210,000Lastly, we need to subtract the amount of credit sales that are expected to be collected by September 30, which is 44% of credit sales:Expected collections by September 30 = 44% x $210,000 = $92,400Therefore, the budgeted accounts receivable balance on September 30 would be:$210,000 - $92,400 = $117,600However, we need to also add the beginning accounts receivable balance of $48,400 to get the final answer:$117,600 + $48,400 = $166,000. Option C is correct.

The budgeted accounts receivable balance on September 30 would be:

A) $126,000
B) $148,000
C) $166,000
D) $190,000

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