A Company Had Credit Sales of $30,000 and Cash Sales

question 150

Multiple Choice

A company had credit sales of $30,000 and cash sales of $10,000 during the month of May.Also during May,the company paid wages of $12,000 and utilities of $1,800.It also received payments from customers on account totaling $4,000.At the beginning of May,the company had a cash balance of $25,000.What is the company's Cash balance at the end of May?

• A)$21,200
• B)$25,200
• C)$35,000
• D)$39,000

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a specific accounting methodology.

Cash

A medium of exchange in the form of coins and banknotes; used to purchase goods or services.

Adjusted Collection Ratio

A financial metric indicating the effectiveness of a healthcare provider in collecting reimbursements and payments due.

Net Collection

The amount of money collected by a business or agency after subtracting any refunds, fees, or costs associated with collection.