Figure 2 Budgeted Sales for the Second Quarter of the Current Year

question 91

Multiple Choice

Figure 2
Budgeted sales for the second quarter of the current year are as follows:
The company collects 20 percent in the month of sale, 70 percent in the first month following the sale, and 10 percent in the second month following the sale.
-Refer to Figure 2 above. If the accounts receivable balance on April 1 is £125,000, what is the budgeted accounts receivable as of June 30?

• A) £159,000
• B) £125,000
• C) £164,000
• D) £144,000

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Definitions:

Demand Curve

A graph representing the relationship between the quantity of a good desired and its price.

Price

is the amount of money expected, required, or given in payment for something.

Change in Demand

A shift in the quantity of a product or service that consumers are willing and able to buy at various prices, due to factors like changes in consumer preferences, income, or the prices of related goods.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specific period.