Wright's Sales Budget for the Third Quarter of the Upcoming

question 22

Multiple Choice

Wright's sales budget for the third quarter of the upcoming year shows budgeted sales of $465,000, $525,000, and $487,500 in July, August, and September, respectively.All sales are made on credit.The cash receipts budget for September shows total cash receipts equal to $459,975.Wright grants a discount to customers who pay within 10 days of the invoice.Wright collects 60% of sales within the discount period, 20% in the month of sale but outside the discount period, 15% in the month following sale and the remainder is uncollectible.What is the discount offered by Wright, and what are the cash collections in September associated with September sales?

• A)2%; $477,750
• B)2%; $384,150
• C)3%; $283,725
• D)3%; $381,225

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