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question 137

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Use the information below to answer the following question(s) .
Copper Corporation has the following sales budget for the last six months of 2016:
Use the information below to answer the following question(s) . Copper Corporation has the following sales budget for the last six months of 2016:    Historically,the cash collection of sales has been as follows: 65 percent of sales collected in month of sale, 25 percent of sales collected in month following sale, 8 percent of sales collected in second month following sale,and 2 percent of sales is uncollectable. -What is the ending balance of accounts receivable at the end of September assuming uncollectible balance is written off in the third month after the sale? A) $199,000 B) $97,000 C) $89,800 D) $93,000 E) $88,000 Historically,the cash collection of sales has been as follows:
65 percent of sales collected in month of sale,
25 percent of sales collected in month following sale,
8 percent of sales collected in second month following sale,and
2 percent of sales is uncollectable.
-What is the ending balance of accounts receivable at the end of September assuming uncollectible balance is written off in the third month after the sale?

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Definitions:

Variable Costs

Expenses that vary directly with the amount of production output.

Total Costs

Total costs encompass the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Average Total Costs

The total cost of production divided by the number of units produced, representing the per-unit production cost.

Marginal Costs

The charge for generating one more unit of a product or service.

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