The Bangor and Aroostock Corporation began operations on September 1 of the curr
ID: 2381508 • Letter: T
Question
The Bangor and Aroostock Corporation began operations on September 1 of the current year. Budget sales for the first three months of business are $260,000, $350,000, and $400,000 respectively, for September, October, and November. The corporation expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collect in the month of the sale and 20% in the month following the sale.
1. The expected cash collections in September from accounts receivable are
a. $223,600
b. $145,600
c. $192,000
d. $168,000
e. $175,000
2. The expected cash collections in October from accounts receivable are
a. $232,400
b. $240,000
c. $210,000
d. $337,400
e. $245,500
3. The expected cash collections from cash sales in November are
a. $20,000
b. $120,000
c. $150,000
d. $200,000
e. $205,000
Explanation / Answer
1. a. $223600
2. d. $337400
3. b. $120000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.