Fresplanade Co

question 59

Multiple Choice

Fresplanade Co. had the following historical collection pattern for its credit sales:
75% collected in the month of sale
12% collected in the first month after month of sale
8% collected in the second month after month of sale
3% collected in the third month after month of sale
2% uncollectible
The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
The estimated total cash collections by Fresplanade Co. during October from accounts receivable is:

• A) $113,160.
• B) $101,400.
• C) $143,640.
• D) $125,640.
• E) $102,420.

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Definitions:

Mood Swings

Rapid and often unpredictable changes in one's mood, ranging from periods of euphoria to periods of depression.

Severe Depression

A psychiatric disorder identified by lasting feelings of despondency or a lack of enjoyment in hobbies, seriously affecting normal life.

Manic Episodes

Periods of abnormally elevated mood and high energy, often characteristic of bipolar disorder.

Negative Symptoms

Features primarily associated with schizophrenia and similar disorders, characterized by a lack or decrease in normal functions, such as motivation, emotional expression, or social engagement.