From the Following Data Calculate the Estimated Cash Received from Credit

question 39

Multiple Choice

From the following data calculate the estimated cash received from credit sales for October.
Credit sales for August,$10 000;September,$12 000;October,$15 000
Credit sales are normally settled in the pattern,60% in the month of sale and 40% in the month following the sale.

• A)$15 000
• B)$27 000
• C)$9000
• D)$13 800

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Definitions:

List Price

The manufacturer's suggested retail price (MSRP) of a product before any discounts, rebates, or special offers.

Buyer

An individual or organization that purchases goods or services for personal use, resale, or use in production or manufacturing.

Allowances

Monetary or other forms of compensation given in addition to regular income, often to cover specific needs or expenses.

Discounts

Reductions from the usual cost of goods or services, offered to customers to encourage purchase, clear inventory, or reward loyalty.