Answer the Following Questions Using the Information Below:
Finmin Company

question 106

Multiple Choice

Answer the following questions using the information below:
Finmin Company has the following sales budget for the last six months of 2015:
$\begin{array}{lrlr}\text { July } & \$ 200,000 & \text { October } & \$ 180,000 \\\text { August } & 160,000 & \text { November } & 200,000 \\\text { September } & 200,000 & \text { December } & 180,000\end{array}$ Sales are immediately due, however the cash collection of sales, historically, has been as follows:
65% of sales collected in the month of sale,
25% of sales collected in the month following the sale,
8% of sales collected in the second month following the sale, and
2% of sales are uncollectible.
-What is the ending balance of accounts receivable for the end of September,assuming uncollectible balances are written off at the end of the second month following the sale?

• A) $199,000
• B) $97,000
• C) $89,800
• D) $86,000

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Definitions:

REM

Rapid Eye Movement, a phase of sleep characterized by fast and random movement of the eyes, during which vivid dreams commonly occur.

Sleep

A natural, reversible state of rest for the body and mind, essential for health and well-being.

WAIS-III

The third edition of the Wechsler Adult Intelligence Scale, a psychological test designed to measure cognitive ability in adults.

Intelligence

The ability to learn, understand, and apply information, solve problems, and adapt to new situations.