Reference: 20_03 Berkley Co.'s Sales Are 10% for Cash and 90% on 90

question 93

Multiple Choice

Reference: 20_03
Berkley Co.'s sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales.
-Assume that total sales for January are budgeted to be $50,000.What are the expected cash receipts for January from the current and past sales? Round all calculations to full dollar amounts.

• A) $18,500
• B) $51,500
• C) $51,900
• D) $55,500
• E) $60,500

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychology, a part of the mind in which innate instinctive impulses and primary processes are manifest.

Immediate Needs

Urgent requirements or priorities that must be addressed or fulfilled without delay.

Developmentally

Pertaining to the process of growth and development in organisms, particularly in the context of physical, emotional, or intellectual progress.