Information pertalning to Collection Corporatlon's sales revenue Is presented below: November December January Cash sales $...

 

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Information pertalning to Collection Corporatlon's sales revenue Is presented below: November December January Cash sales $ 116,000 $ 145,000 $ 98,000 Credit sales 308,000 470, 000 254,000 Total sales $ 424, 000 $ 615,000 $ 352,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected In the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an Inventory equal to 75% of the sales projected for the month. All purchases of Inventory are on open account; 30% will be pald In the month of purchase, and the remainder pald In the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted Inventory purchases In November by Collection Corporation are: Multiple Cholce $276,750. $340,350. $424,000. $531,150. $559,610. Information pertalning to Collection Corporatlon's sales revenue Is presented below: November December January Cash sales $ 116,000 $ 145,000 $ 98,000 Credit sales 308,000 470, 000 254,000 Total sales $ 424, 000 $ 615,000 $ 352,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected In the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an Inventory equal to 75% of the sales projected for the month. All purchases of Inventory are on open account; 30% will be pald In the month of purchase, and the remainder pald In the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted Inventory purchases In November by Collection Corporation are: Multiple Cholce $276,750. $340,350. $424,000. $531,150. $559,610.

Answer rating: 100% (QA)

Credit sales fur Novem ber 308 000 Uncollecti... View the full answer