What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the second month following the

ACCOUNTING

Multiple Choice

Fiscal Company has the following sales budget for the last six months of 20x3:


July $100,000 October $ 90,000

August 80,000 November 100,000

September 110,000 December 94,000


Historically, the cash collection of sales has been as follows:

65% of sales collected in the month of sale,

25% of sales collected in the month following the sale,

8% of sales collected in the second month following the sale, and

2% of sales are uncollectible.


What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the second month following the sale?

a. $99,500

b. $48,500

c. $44,900

d. $46,500

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