Question
El Paso Companys sales were budgeted for the first months of its fiscal year as follows: April $340,000 May $420,000 All sales are on credit
El Paso Companys sales were budgeted for the first months of its fiscal year as follows:
| April | $340,000 |
| May | $420,000 |
All sales are on credit and management estimates that 55% will be collected in the month of the sale, with the remaining 45% collected in the month following the sale. Cash collections during May are estimated at:
| a. | $384,000 | |
| b. | $187,000 | |
| c. | $231,000 | |
| d. | $376,000 |
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IT Auditing And Application Controls For Small And Mid Sized Enterprises Revenue Expenditure Inventory Payroll And More
Authors: Jason Wood, William Brown, Harry Howe
1st Edition
1118072618, 9781118072615
