Fresplanade Co

question 113

Multiple Choice

Fresplanade Co.had the following historical pattern for its credit sales:
75% collected in the month of sale
12% collected in the first month after sale
8% collected in the second month after sale
3% collected in the third month after sale
2% uncollectible
The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
July $72,000
August $84,000
September $96,000
October $108,000
November $120,000
December $102,000
The estimated cash collections during July from July accounts receivable is:

• A)$83,160.
• B)$79,380.
• C)$87,840.
• D)$54,000.
• E)$71,640.

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Definitions:

Estrogen

A group of sex hormones primarily responsible for the development and regulation of the female reproductive system and secondary sexual characteristics.

Female Growth Spurt

The rapid increase in height and weight experienced by girls during puberty, typically earlier than in boys.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans, marking the onset of fertility and reproductive capability.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, increasing alertness, attention, and energy.