Boone Co's Sales, Based on Past Experience, Are 20% Cash and and 80

question 130

Multiple Choice

Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $54,000, of which $12,000 is from November sales. Total sales for January and February are budgeted to be $100,000 and $120,000, respectively.

What are Boone Co.'s budgeted cash receipts for January?

• A) $74,200.
• B) $85,000.
• C) $87,000.
• D) $94,200.
• E) $99,000.

---

Definitions:

LEO

Low Earth Orbit, a satellite system used for telecommunication, located approximately 2,000 kilometers above the Earth's surface.

NFC

Near Field Communication, a short-range wireless technology that enables the exchange of data between devices over about a 4 cm distance, commonly used for contactless payments.

Short-range

Describes communication or transmission technologies designed to work over short distances.

Wireless Network

A method of communication that uses radio waves to connect devices to the internet and to each other without the use of wires.