Kam Department Store Reported the Following Information for 2013 All Sales Are on Credit

question 130

Multiple Choice

Kam Department Store reported the following information for 2013: $\begin{array}{llll}&\text { October }&\text {November }&\text {December }\\\text { Budgeted sales } & \$ 1,240,000 & \$1,160,000 & \$ 1,440,000 \\\end{array}$ All sales are on credit.
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much cash will Kam receive in November?

• A)$580,000
• B)$1,300,000
• C)$1,200,000
• D)$1,160,000

---

Definitions:

Monthly Demand

The total quantity of a product or service that consumers are willing and able to purchase in a month.

Selling Price

The amount a buyer pays to purchase a product, determined by cost, market demand, and competition.

Direct Materials

Raw materials that are directly traced and integral to the finished product.

Direct Labour

The labor costs directly associated with the manufacture of specific goods or services.