The following information is from White Mountain Furniture Company's financial records: Month July August September October...

 

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The following information is from White Mountain Furniture Company's financial records: Month July August September October Sales $180,000 $165,000 $150,000 $195,000 All sales are made on account. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. Cash disbursements for expenses are expected to be $36,000 for the month of November. The company's cash balance on November 1 was $55,000. Calculate the excepted cash balance on November 30. OA. $79,000 B. $54,700 C. $37,000 D. $15,000 E. $34,000 Purchases All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid by the tenth of the following month. Purchases for November are budgeted at $150,000, and sales for November are budgete at $165,000. $105,000 $120,000 $90,000 $135,000 The following information is from White Mountain Furniture Company's financial records: Month July August September October Sales $180,000 $165,000 $150,000 $195,000 All sales are made on account. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. Cash disbursements for expenses are expected to be $36,000 for the month of November. The company's cash balance on November 1 was $55,000. Calculate the excepted cash balance on November 30. OA. $79,000 B. $54,700 C. $37,000 D. $15,000 E. $34,000 Purchases All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid by the tenth of the following month. Purchases for November are budgeted at $150,000, and sales for November are budgete at $165,000. $105,000 $120,000 $90,000 $135,000

Answer rating: 100% (QA)

Cash balance on November 1 55000 Add Collection on sales made in November 165000 ... View the full answer