Question
Harrington makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the
Harrington makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $60,000, $100,000, and $70,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31?
| August Collections | August 31 Receivables Balance | |||||
| A. | $ | 81,000 | $ | 101,000 | ||
| B. | $ | 87,000 | $ | 59,000 | ||
| C. | $ | 87,000 | $ | 67,000 | ||
| D. | $ | 181,000 | $ | 59,000 | ||
| E. | None of these options is correct. | |||||
Multiple Choice
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Choice A
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Choice B
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Choice C
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Choice D
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Choice E
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Accounting History And The Rise Of Civilization, Volume II
Authors: Gary Giroux
1st Edition
163157793X, 9781631577932
