Determine the month ending balance for accounts receivable

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Question - Nancy and Frank Products Ltd is trying to forecast Accounts Receivable. On Jan 1, 2022 it has $620 in Accounts Receivable. On average, 20% of sales are collected at the time of sale and 80% are collected the following month. Determine the month ending balance for Accounts Receivable for Jan, Feb and Mar if payments received in December are $1620. Sales for Dec, Jan, Feb and Mar are $2800, $2800, $2000 and $3800 respectively. You must show all your work and provide appropriate explanations for your calculation.

Reference no: EM133176950

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