Item 5

Item 5

Chocolate Co. reports the following information from its sales budget:

Expected sales:	July	$	95,000
	August		115,000
	September		125,000

Cash sales are normally 20% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

Multiple Choice

• $217,000.

• $117,000.

• $25,000.

• $92,000.

• $125,000.

  Justin Company's budget includes the following credit sales for the current year: September, $41,000; October, $52,000; November, $46,000; December, $48,000. Credit sales are collected as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales?

  Multiple Choice

• $46,820.

• $49,620.

• $35,420.

• $44,220.

• $46,000.