Answer:
$150,000
Explanation:
Given data:
Total sales for the month of August = $200,000
Total sales for the month of September = $210,000
Total sales for the month of October = $220,500
Total cash sales = 25% of the total sales
Thus,
The total credit sales = Total sales - Total cash sales = 100% - 25% = 75%
Therefore,
For the month of the August,
Total cash sales = 25% of total sales of August = 0.25 × $200,000
or
Total cash sales = $50,000
Therefore, total credit sales for the month of August
= Total sales in August - Total cash sales in August = $200,000 - $50,000
= $150,000
Hence,
the amount of accounts receivable to be reported for August = $150,000
