Roughly evenly split between credit and cash sales

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Reference no: EM13814043

On March 31, 2013, Mike's Bike Shop had an outstanding accounts receivable of $19,000. Mike's sales are roughly evenly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the bike shop are given here:

Month Sales

January $17,000

February $22,000

March $27,000

April (projected) $33,000

a. Under these circumstances, what should the balance in accounts receivable be at the end of April?

b. How much cash did Mike's realize during April from sales and collections?

Reference no: EM13814043

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