Parvis Makes All Sales on Account, Subject to the Following

question 87

Multiple Choice

Parvis makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for October, November, and December were $70,000, $60,000, and $50,000, respectively, what was the budgeted receivables balance on December 31?

• A) $40,000.
• B) $46,000.
• C) $49,000.
• D) $59,000.
• E) None of the answers is correct.

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Definitions:

Psychotherapy

The treatment of mental disorder or emotional challenges by psychological means rather than medical, often involving talking therapies with a trained professional.

Mild Disorders

Refers to psychological or psychiatric conditions that are present but not severe enough to significantly interfere with an individual’s daily functioning.

Couples Therapy

A form of psychotherapy aimed at resolving relationship issues and improving communication between partners.

Success Rate

The proportion or percentage of attempts that are successful in achieving a specified goal.