1. Plantsville makes all sales on account, subject to the following collection pattern: 25% are collected in the month of sale; 60% are collected in the first month after sale; and 15% are collected in the second month after sale. If sales for October, November, and December were $67,000, $57,000, and $47,000, respectively, what was the budgeted receivables balance on December 31?

Multiple Choice

None of the answers is correct. $56,000. $44,250. $43,800. $35,250.

2

Glastonbury Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 50% are collected in the first month after sale; and 30% are collected in the second month after sale. If sales for April, May, and June were $53,000, $73,000, and $63,000, respectively, what were the firm's budgeted collections for April?

Multiple Choice

• $10,600.

• $12,600.

• $41,100.

• $42,400.

• None of the answers is correct.