ACC 2203 PRACTICE PROBLEMS FOR CHAPTERS 7, 8, 9, 10, and 11 Diltex Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible The cost of goods sold is 65% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. 1. Expected cash collections in December are: A. $59,400 B. $140,000 C. $199,400 D. $200,000 2. December cash disbursements for merchandise purchases would be: A. $136,500 B. 568,250 C. $133,250 D. $130,000 3. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: A. $82,000 B. $113,400 C. 560,000 D. 554,000 4. Accounts payable at the end of December would be: A. $65,000 B. $68,250 C. $130,000 D. $133,250