Question
Drinkwater Corporation has retrieved the following information from their sales budget: Month Total Budgeted Revenue January $770,000 February $870,000 March $750,000 April $610,000 May $760,000
Drinkwater Corporation has retrieved the following information from their sales budget:
| Month | Total Budgeted Revenue |
| January | $770,000 |
| February | $870,000 |
| March | $750,000 |
| April | $610,000 |
| May | $760,000 |
| June | $680,000 |
All sales are made on account. Collections on sales are based on the following schedule:
| Percentage | |
| Initial Month | 15% |
| Month Following | 35% |
| Second Month Following | 50% |
How much of the sales over the six-month period has not been collected by July 1st?
Multiple Choice
-
$958,000
-
$578,000
-
$0
-
$1,631,000
-
$986,000
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
13th Canadian edition
133405508, 978-0133405507
