Question
Benjamin Corporation began its operations on Sept. 1 of the current year. Budgeted sales for the first three months of business are $250,000, $300,000, and
Benjamin Corporation began its operations on Sept. 1 of the current year. Budgeted sales for the first three months of business are $250,000, $300,000, and $420,000, respectively, for Sept. Oct. and Nov. The company expects to sell 20% of its merchandise for cash. Of sales on account. 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. Refer to the info provided for Benjamin Corp. The cash collection from accounts receivable in Sept. are: a. $190,000 b. $168,000 c. $140,000 d. $175,000 e. none of the listed responses is correct.
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