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Problem 1: The Gardner Company expects sales for October of $258,000. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $72,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet?
Multiple Choice Option 1: $103,200. Option 2: $129,000. Option 3: $72,000. Option 4: $77,400. Option 5: $154,800.
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