Use the Information Below to Answer the Following Questions Past Records Ind Icate That Expected Receipts Collected from Debtors

question 30

Multiple Choice

Use the information below to answer the following questions. Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2017 and planned sales for the first quarter of 2018 .

$\begin{array} { l l r r r } & & \text { Cash } & \text { Credit } & \text { Total } \\ 2017 \text { Actual Sales for } & \text { November } & 25,000 & 25,000 & 50,000 \\ & \text { December } & 35,000 & 40,000 & 75,000 \\ 2018 \text { Estimated Sales for } & \text { January } & 15,000 & 20,000 & 35,000 \\ & \text { February } & 18,000 & 30,000 & 48,000 \\ & \text { March } & 22,000 & 40,000 & 62,000 \end{array}$

Past records ind icate that expected receipts collected from debtors will be:
60 per cent in the month of sale
40 percent in the month following the sale
-Refer to the table above. What is the total cash expected to be collected from all sales in March?

• A)$50,000.
• B)$58,000.
• C)$62,000.
• D)$36,000.

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Definitions:

Treatment Method

Approaches, techniques, or procedures used in medicine or psychology to cure or alleviate symptoms of diseases or disorders.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, entering into contracts, and being sued.

Insurance Company

An organization that provides risk management in the form of insurance contracts to protect against potential loss.

Real Estate

Land and things permanently attached to the land, such as houses, buildings, and trees.