Clooney Company Has the Following Expected Pattern of Collections on Credit

question 125

Multiple Choice

Clooney Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.
At the end of May,Clooney Company has the following accounts receivable balances:
From Apil sales              $21,00000
From May sales              48,000
Clooney's expected sales for June are $150,000.How much cash will Clooney Company expect to collect in June?

• A)$127,400
• B)$129,000
• C)$148,600
• D)$152,520

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Definitions:

Correspond With Behaviour

To match or align with actions; the degree to which stated beliefs or attitudes are reflected in one’s actions.

Recall

The act of retrieving information or memories from the past without the aid of external cues.

Direct Experience

Knowledge or skill acquisition resulting from active participation or firsthand involvement in events or activities.

Vicarious Reinforcement

involves learning new behaviors or attitudes through observing the consequences of those behaviors for someone else, rather than experiencing them directly.