A Company's Past Experience Indicates That 70% of Its Credit $$\begin{array} { l r } \text { January } & \$ 100,000 \\\text { February } & 90,000 \\\text { March } & 110,000\end{array}$$

question 42

Multiple Choice

A company's past experience indicates that 70% of its credit sales are collected in the month of sale and 28% in the next month.The remainder is never collected.The company's budgeted credit sales totalled: $$\begin{array} { l r } \text { January } & \$ 100,000 \\\text { February } & 90,000 \\\text { March } & 110,000\end{array}$$ How much are expected cash receipts for February?

• A)$102,200
• B)$88,200
• C)$93,800
• D)$91,000

---

Definitions:

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, not directly tied to the products or services sold.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for balances at the end of an accounting period.

Adjusting Journal Entries

Entries made in the general journal at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Prepared

The state of being made ready in advance for a specific purpose or event.