a. 120,000 b. 121,000 c. 119,000 d. 132,000 lood 0 Nevada Company\'s Accountant

Question

a. 120,000 b. 121,000 c. 119,000 d. 132,000 lood 0 Nevada Company's Accountant is in the process of preparing the company's bud financial statements for May and has the following information. The March 180,000 150,000 April May 270,000 450,000 300,000 600,000 Credit Sales Purchases of Inventory Assuming collection of credit sales is expected as follows: 20% during the month of sale, 75% All inventory purchases are on account, 25% of the purchases are paid for in the month of during the month following the sale; 5% in the second month following the sale. purchase. The remaining 75% is paid for in the month following the purchase. 5. Wh at is the amount of estimated c ash receipts in May from the sales that were made in April? a. $90,000 b. $202,500 c. $9,000 d. $301,500 aoo

Explanation / Answer

5. Answer : b. $202500 ($270000 * 75%).

6. Answer : a. $373500

$270000 * 5% = $13500

$450000 * 80% = $360000

$373500.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.