Atlanta Company Expects a Total of $20,000 Sales in June

question 145

Multiple Choice

Atlanta Company expects a total of $20,000 sales in June.Of these, credit sales are expected to be $12,000.Collections are 50% in the month of sale, 40% in the month following the sale, and 5% two months following the sale.The remaining 5% is expected to be uncollectible._____ is the estimated cash collection in June from June sales.

• A)$14,000
• B)$20,000
• C)$17,200
• D)$9,200

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Definitions:

Power of Test

The probability that a statistical test will correctly reject a false null hypothesis, a measure of a test’s ability to detect an effect when there is one.

Specified Value

A particular or defined value, often set as a criterion or standard.

Null Hypothesis

A hypothesis in statistics that assumes there is no significant difference or effect and serves as the default assumption in a hypothesis test.

Significance Level

A threshold used in hypothesis testing to determine whether to reject the null hypothesis, typically expressed as a probability such as 0.05 or 5%.