For Dubinsky Company, Experience Has Shown That Payment for the Credit

question 186

Multiple Choice

For Dubinsky Company, experience has shown that payment for the credit sales is received as follows: 40% in the month of sale, 40% in the first month after sale, 10% in the second month after sale, and 10% uncollectible. Dubinsky Company has budgeted the following credit sales during the last four months of the year: September, $15,000; October, $18,000; November $16,000; December, $34,000. How much cash can Dubinsky Company expect to collect in November as a result of credit sales?

• A)$13,600
• B)$8700
• C)$15,100
• D)$16,000

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Definitions:

Trade Advertising

Advertising directed towards professionals within a specific industry, as opposed to general consumers, to promote products or services.

Retail Advertising

Marketing efforts aimed at generating interest and sales among end consumers directly through various media channels.

Intensive Promotion

An aggressive marketing strategy that employs a wide range of advertising and promotional techniques to maximize consumer engagement and drive sales.

Cash Discount

A reduction in price offered to buyers as an incentive for making payment in cash or within a specified prompt payment period.