Compton Company expects the following total sales: MonthSalesMarch$30,000April$20,000May$30,000June$25,000The 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, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is:
A. $20,400.
B. $12,600.
C. $21,000.
D. $12,240.
Answer: B
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