Ballentine Company expects sales for June, July, and August of $65,000, $71,000, and $61,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following sale, 40% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?   Multiple Choice $39,030. $63,430. $81,600. $89,450. $118,200.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ballentine Company expects sales for June, July, and August of $65,000, $71,000, and $61,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 55% of its credit sales in the month following sale, 40% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?

 

Multiple Choice
  • $39,030.

  • $63,430.

  • $81,600.

  • $89,450.

  • $118,200.

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