Wechsler Company Uses the Aging of Accounts Receivable Method

question 70

Multiple Choice

Wechsler Company uses the aging of accounts receivable method.The company performed an aging of accounts receivable on December 31 and gathered the following information:

What is the amount of Accounts Receivable,Net that will be reported on the balance sheet at December 31?

• A) $505,000
• B) $496,000
• C) $467,000
• D) $516,000

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used for managing liquidity and ensuring a company can meet its obligations.

Budgeted Cash Receipts

An estimation of the cash a company expects to receive within a certain period, based on projected sales or revenue.

Budgeted Cash Disbursements

An estimate of the total amount of cash an organization plans to pay out over a specified period, including operating expenses and purchase of assets.

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals.