**Benton Company Sales Budget Analysis***The Benton Company's sales budget provides the following projected total sales for the first four months of the year:*| Month | Sales ||----------|-----------|| January | $23,000 || February | $32,000 || March | $37,000 || April | $42,000 |The company anticipates that 80% of its sales will be on account (credit sales). The collection pattern for credit sales is as follows:- 25% collected in the month of the sale.- 7% collected in the month following the sale.- Remaining amounts are deemed uncollectible and written off.**Question:**Calculate the total cash receipts during April.**Multiple Choice Options:**- $37,816- $27,605[Note: Assume this question is presented as part of an educational exercise focusing on cash flow forecasting and accounts receivable management.]

A cash receipt is a written acknowledgement of the amount of money received in a cash or cash…

Benton Company's sales budget shows the following expected total sales: Month January February March April Multiple Choice The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 71% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: $27,605. Sales $ 23,000 $32,000 $37,816. $ 37,000 $ 42,000

Benton Company's sales budget shows the following expected total sales: Month January February March April Multiple Choice The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 71% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: $27,605. Sales $ 23,000 $32,000 $37,816. $ 37,000 $ 42,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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