Reference: 07-04
the LaPann Company Has Obtained the Following Sales

question 37

Multiple Choice

Reference: 07-04
The LaPann Company has obtained the following sales forecast data: $$\begin{array} { | l | l | l | l | l | } \hline & { \text { July } } & { \text { August } } & \text { September } & { \text { October } } \\\hline \text { Cash sales } & \$ 80,000 & \$ 70,000 & \$ 50,000 & \$ 60,000 \\\hline \text { Credit sales } & \$ 240,000 & \$ 220,000 & \$ 180,000 & \$ 200,000 \\\hline\end{array}$$ July
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.
-The budgeted cash receipts for October are?

• A)$226,000.
• B)$278,000.
• C)$188,000.
• D)$248,000.

Analyze transactions involving the exchange of assets, including the determination of gains or losses.

Apply various depreciation methods to calculate depreciation expense.

Understand the concept of goodwill in accounting and how it is measured.

Record and understand the transactions involving the purchase and disposition of equipment.