The Following Sales Budget Has Been Prepared Collections of Credit Sales Are 50% in the Month of }&\text

question 4

Multiple Choice

The following sales budget has been prepared:
$\begin{array}{lll}\text { Month }&\text { Cash Sales }&\text { Credit Sales }\\\text { September } & \$ 167,000 & \$ 123,000 \\\text { October } & 225,000 & 180,000 \\\text { November } & 330,000 & 210,000 \\\text { December } & 135,000 & 190,000\end{array}$
Collections of credit sales are 50% in the month of sale,40% in the month following sale,and 10% two months following sale.No uncollectible accounts are expected.What are the estimated cash collections in December?

• A) $135,000
• B) $197,000
• C) $325,000
• D) $332,000

Understand the accounting and journal entry process for purchasing equity and debt investments.

Analyze the effects of dividends received and interest accrued on investments for financial reporting.

Prepare and adjust journal entries to report investments at fair value according to GAAP.

Recognize the difference between short-term and long-term investment strategies and their classifications.

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Definitions:

Frequent Fires

Recurring combustion events that occur with high frequency in a particular area, significantly affecting ecosystems and human activities.

Giant Sequoia

A species of tree known for its immense size and longevity, native to the Sierra Nevada mountain range in California; it is among the largest living organisms on earth.

Temperate Grassland

A biome characterized by vast open spaces with few trees, moderate rainfall, and a dominance of grasses.

Catastrophic Change

A sudden and widespread disaster that can cause significant environmental, economic, or social upheaval.