Felon Company Expects a Total of $20,000 Sales in June

question 78

Multiple Choice

Felon Company expects a total of $20,000 sales in June. Of these, credit sales are expected to be $12,000. Collections are 50% in the month of sale, 40% in the month following the sale, and 5% two months following the sale. The remaining 5% is expected to be uncollectible. is the estimated cash collection in June from June sales.

• A) $14,000
• B) $17,200
• C) $20,000
• D) $9,200

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Definitions:

Feedforward

A communication process that focuses on providing future-oriented feedback or information to guide actions and improve outcomes before tasks are executed.

Internal Auditing

An objective assurance and consulting activity designed to add value and improve an organization's operations, focusing on internal control effectiveness and risk management.

Accounting Manager

A professional role responsible for overseeing accounting and financial tasks within an organization, such as maintaining financial records, preparing reports, and ensuring compliance with laws and regulations.

Concurrent Control

A management technique that involves monitoring and adjusting processes and activities as they happen in real-time.