The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,000. Firm sales were..

The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,000. Firm sales were..

The accounts receivable for Pastors Brewing Company on March 31, 2016 was $18,000. Firm sales were roughly evenly split between credit and cash sales, with 40 percent of the credit sales collected in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the brewing company are given here:

MONTH SALES MONTH SALES

January……………….$15,000………………March………………$25,000

February………………20,000………………..April (projected)……30,000

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

b. How much cash did Pastors’ realize during April from sales and collections?

The accounts receivable for Pastors Brewing Company on March 31

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