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formation pertaining to Collection Corporation's sales revenue is presented below: December $ 137,000 462,000 $ 599,000 Cash sales Credit sales Total sales November $ 108,000 300,000 $ 408,000 anagement estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of ale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales ojected for the month. All purchases of inventory are on open account: 20% will be paid in the month of purchase, and the remainder paid in the mom llowing the month of purchase. Purchase costs are approximately 60% of the selling prices. udgeted January cash payments for December inventory purchases by Collection Corporation are: Show Transcribed Text Multiple Choice January $ 90,000 246,000 $ 336,000 $48,210. 2 U

formation pertaining to Collection Corporation's sales revenue is presented below: December $ 137,000 462,000 $ 599,000 Cash sales Credit sales Total sales November $ 108,000 300,000 $ 408,000 anagement estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of ale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales ojected for the month. All purchases of inventory are on open account: 20% will be paid in the month of purchase, and the remainder paid in the mom llowing the month of purchase. Purchase costs are approximately 60% of the selling prices. udgeted January cash payments for December inventory purchases by Collection Corporation are: Show Transcribed Text Multiple Choice January $ 90,000 246,000 $ 336,000 $48,210. 2 U

FINANCIAL ACCOUNTING
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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Information pertaining to Collection Corporation's sales revenue is presented below: December $ 137,000 462,000 $599,000 January $ 90,000 246,000 $336,000 Cash sales Credit sales Total sales Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account, 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Budgeted January cash payments for December inventory purchases by Collection Corporation are: Show Transcribed Text Multiple Choice November $ 108,000 300,000 $ 408,000 O O $48,210. $71,880. $192,840. $287,520. C C
Transcribed Image Text:Information pertaining to Collection Corporation's sales revenue is presented below: December $ 137,000 462,000 $599,000 January $ 90,000 246,000 $336,000 Cash sales Credit sales Total sales Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account, 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Budgeted January cash payments for December inventory purchases by Collection Corporation are: Show Transcribed Text Multiple Choice November $ 108,000 300,000 $ 408,000 O O $48,210. $71,880. $192,840. $287,520. C C
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