Kent Company Anticipates Total Sales for April, May, and June

question 140

Multiple Choice

Kent Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales for May.

• A) $561,500.
• B) $652,500.
• C) $817,500.
• D) $592,500.
• E) $890,000.

---

Definitions:

Confirmation Bias

A tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence.

Framing Effect

The tendency of people to react differently to a particular choice or situation depending on how it is presented.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision-making processes, often used to make quick, efficient judgments.

Algorithms

Step-by-step procedures or formulas for solving problems, typically implemented by computers.