What is the ending balance of accounts receivable

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Question - Freedom Company has the following sales budget for the last six months of 2018:

July $204,000 October $180,000

August 170,000 November 201,000

September 205,000 December 180,000

Sales are immediately due, however the cash collection of sales, historically, has been as follows:

55% of sales collected in the month of sale,

35% of sales collected in the month following the sale,

7% of sales collected in the second month following the sale, and

3% of sales are uncollectible.

Required -

A) What is the total cash collected at the last quarter that is, end of December?

B) What is the ending balance of accounts receivable for the end of December, assuming uncollectible balances are written off at the end of the second month following the sale?

Reference no: EM133054343

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