(LO 7) The Gardner Company expects sales for October of $238,000. Experience suggests that 45% of sales are for cash and 55% 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 $62,000. What is the amount of Accounted Receivables on the October 31 budgeted balance sheet?

$65,450

Explanation:

Calculation for the amount of Accounted Receivables on the October 31 budgeted balance sheet

Using this formula

Accounted Receivables on the October 31 budgeted balance sheet=Credit sales*October sales*Credit sales

Let plug in the formula

Accounted Receivables on the October 31 budgeted balance sheet=(55% * 238,000 *50%)

Accounted Receivables on the October 31 budgeted balance sheet=$65,450

Therefore the amount of Accounted Receivables on the October 31 budgeted balance sheet will be $65,450

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.