Question
Nebraska Corporation began its operations on September 1 ofthe current year. Budgeted sales for the first three months ofbusiness are $240,000, $300,000, and $420,000, respectively,
Nebraska Corporation began its operations on September 1 ofthe current year. Budgeted sales for the first three months ofbusiness are $240,000, $300,000, and $420,000, respectively, forSeptember, October, and November. The company expects to sell 20%of its merchandise for cash. Of sales on account, 70% are expectedto be collected in the month of the sale, 25% in the monthfollowing the sale, and the remainder in the following month.Calculate the cash collections in September from accountsreceivable:
| a. | $240,000 |
| b. | $134,400 |
| c. | $192,000 |
| d. | $168,000 |
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
978-1118856994
