Reference: 20_03 Berkley Co.'s Sales Are 10% for Cash and 90% on 90

question 93

Multiple Choice

Reference: 20_03
Berkley Co.'s sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales.
-Assume that total sales for January are budgeted to be $50,000.What are the expected cash receipts for January from the current and past sales? Round all calculations to full dollar amounts.

• A) $18,500
• B) $51,500
• C) $51,900
• D) $55,500
• E) $60,500

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Definitions:

New Product Development

The process of bringing a new product or service to market, from concept through design, creation, and launch.

Premarket Testing

The process of evaluating a new product or service with a selected group of consumers before it is officially launched to the public.

Test Marketing

Introduces a new product or service to a limited geographic area (usually a few cities) prior to a national launch.

Modify Existing Products

The process of making alterations or improvements to current products to meet new requirements or take advantage of new market opportunities.