Compton Company Expects the Following Total Sales The Company Expects 60% of Its Sales to Be Credit

question 68

Multiple Choice

Compton Company expects the following total sales: $$\begin{array} { | l | c | } \hline \text { Month } & \text { Sales } \\\hline \text { March } & \$ 30,000 \\\hline \text { April } & \$ 20,000 \\\hline \text { May } & \$ 30,000 \\\hline \text { June } & \$ 25,000 \\\hline\end{array}$$ The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 68% in the month following the sale with the remainder being uncollectible and written off. The budgeted accounts receivable balance on May 31 is:

• A) $12,240.
• B) $12,600.
• C) $20,400.
• D) $21,000.

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