Problem - Use the following information to answer the five questions in the quiz: Door & Window Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:
August $120,000
September 200,000
October 230,000
The company expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month.
1. What are the total credit sales for August:
$120,000
$72,000
$48,000
None of the above
2. What are the total credit sales for October:
$92,000
$120,000
$138,000
None of the above
3. What are the total cash collections for August?
$120,000
$72,000
$48,000
$66,000
4. What are the total cash collections for September?
$164,000
$80,000
$200,000
$120,000
5. What are the total cash collections for October?
$230,000
$138,000
$216,500
$92,000