Benjamin Corporation Began Its Operations on September 1 of the Current

question 108

Multiple Choice

Benjamin Corporation began its operations on September 1 of the current year.Budgeted sales for the first three months of business are $250,000, $300,000, and $420,000, respectively, for September, October, and November.The company expects to sell 20% of its merchandise for cash.Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections from accounts receivable in October are:

• A) $270,000.
• B) $272,500.
• C) $210,000.
• D) $218,000.

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Definitions:

House Fire

An uncontrolled burning within a residential building, posing serious risks to life, property, and safety.

Thermal Damage

Injury or harm caused to tissues due to exposure to extreme heat or cold.

Mercury Inhalation

The act of breathing in mercury vapor, which can lead to mercury poisoning and serious health issues.

Pneumonitis

An inflammation of the lung tissue that can be caused by infections, exposure to irritants, or an autoimmune response.