Answer the Following Questions Using the Information Below

question 138

Multiple Choice

Answer the following questions using the information below:
Monetary Company has the following sales budget for the last six months of 2011:
Historically, the cash collection of sales has been as follows:

-What is the ending balance of accounts receivable for September, assuming uncollectible balances are written off during the second month following the sale?

• A)$199,000
• B)$97,000
• C)$89,800
• D)$93,000

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Definitions:

Contracts Classification

The categorization of contracts based on their features, such as enforceability, formation, and performance.

Covenant Not to Compete

An agreement, often part of a contract of employment or sale of a business, that prohibits a person from engaging in a similar profession or trade in competition against another party.

Bowling Alley

A facility equipped with lanes for bowling, including equipment for keeping score and often additional amenities such as food services.

Enforceability

The capability of a contract or legal agreement to be legally upheld or compelled by law.