Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 September 120,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:A) $ 78,000 B) $ 108,000 C) $ 120,000 D) $ 130,500

Question

Business

Evan Graham

26 January, 22:45

Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 September 120,000 Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:A) $ 78,000 B) $ 108,000 C) $ 120,000 D) $ 130,500

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Answers (1)

Know the Answer?

Janet Mann · Answer 1

B) $ 108,000

Explanation:

September cash sales

(25% * $120,000) = $ 30,000

August credit sales

(75% * $104,000) = $78,000

Cash collected in September is

$ 108,000