Benjamin Corporation Began Its Operations on September 1 of the Current

question 105

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 November are:

• A) $305,200.
• B) $294,000.
• C) $235,200.
• D) $381,500.

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Definitions:

Landlord Accepts

The act of a landlord agreeing to terms, often referring to lease agreements or accepting conditions related to property occupancy or repair.

Obligation to Pay Rent

A legal duty of a tenant to pay the agreed-upon rental amount to the landlord for the use of property.

Lessee

A person or entity that leases or rents property from a lessor, obtaining the right to use the property according to the terms of the lease agreement.

Tenancy Termination

The end of a lease or rental agreement, which can occur for various reasons and may be initiated by either the tenant or the landlord.