Use the Following Information for the Next 2 Questions

question 13

Multiple Choice

Use the following information for the next 2 questions.
Bynsel, Inc., a retailer, projects the following purchases and sales of its product for the next 4 months: Each unit costs $100, and all purchases are on account. Two-thirds of purchases are paid in the month of the purchase and one-third are paid in the month following the purchase. Bynsel gets a 3% discount whenever it pays in the month of the purchase. The selling price per unit is $200. Sales are 60% cash and 40% on customer credit cards. The bank charges Bynsel a 5% fee for each credit card transaction and transfers the funds to Bynsel's checking account on the same day as the credit card sale.
-What are cash receipts for the third month?

• A) $78,400
• B) $58,800
• C) $124,000
• D) $76,000

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Definitions:

Andy Warhol

A leading figure in the visual art movement known as Pop Art; his works explore the relationship between artistic expression, celebrity culture, and advertising.

Dutch Vanitas Paintings

A genre of still-life painting that flourished in the Netherlands in the 17th century, characterized by symbolic objects reminding viewers of the transience of life.

Audrey Flack

An American artist known for her pioneering work in photorealism, creating highly detailed paintings that imitate the appearance of photographs, often with a focus on still life and portraits.

Marilyn

Often refers to Marilyn Monroe, a major cultural icon and American actress, model, and singer of the 1950s and early 1960s.