(Appendix 10A) Taft Corporation Collects Cash from Customers as Follows $$\begin{array} { l r } \text { May } & \$ 600,000 \\\text { June } & 700,000 \\\text { July } & 500,000 \\\text { August } & 600,000\end{array}$$

question 2

Multiple Choice

(Appendix 10A) Taft Corporation collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December. Budgeted sales are all on credit and amount to: $$\begin{array} { l r } \text { May } & \$ 600,000 \\\text { June } & 700,000 \\\text { July } & 500,000 \\\text { August } & 600,000\end{array}$$ What is the budgeted amount of accounts receivable at the end of August?

• A) $353,000
• B) $340,000
• C) $329,000
• D) $377,000

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Definitions:

Strategy Formation

The process of developing a set of critical decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it.

Product Offerings

The complete set of products and services that a company makes available to consumers.

Analyzing Historical

The process of examining past data, events, or conditions to draw insights or make predictions about future trends.

Tax Codes

The laws and regulations that determine how individuals, corporations, and other entities are taxed by governmental authorities.