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Question
Lara Company has budgeted the following credit sales during the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 60% in the first month after sale, and 20% in the second month after sale. What will be the balance in Accounts Receivable at the end of November assuming the payment patterns have been as described?
A. $26,600
B. $31,200
C. $33,800
D. $39,600
E. $25,200
Answer
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Related questions
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