The LaPann Company Has Obtained the Following Sales Forecast Data

question 68

Multiple Choice

The LaPann Company has obtained the following sales forecast data:
$\begin{array} { | l | r | r | r | r | } \hline & \text { July } & \text { August } & \text { September } & \text { October } \\\hline \text { Cash Sales } & \$ 80,000 & \$ 70,000 & \$ 50,000 & \$ 60,000 \\\hline \text { Credit Sales } & 240,000 & 220,000 & 180,000 & 200,000 \\\hline\end{array}$
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.



-What are the budgeted cash receipts for October?

• A) $188,000.
• B) $226,000.
• C) $248,000.
• D) $278,000.

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Definitions:

Installed Software

Computer programs that are downloaded and installed on a computer's hard drive, as opposed to being used in a web browser.

Cash Sales

Transactions where payment is made in cash at the time of purchase.

Financial Accounting Reports

Documents that summarize the financial performance and position of an organization, including income statements, balance sheets, and cash flow statements.

QBO Settings

Configuration options within QuickBooks Online software that allow users to customize accounts, preferences, and features as per their business requirements.