Doitall Company Makes All Its Sales on Account -Refer to the Figure

question 114

Multiple Choice

Doitall Company makes all its sales on account. Doitall's accounts receivable payment experience is as follows:
Doitall provided information on sales as follows:
$\begin{array}{lr}\text { Percent paid in the month of sale } & 18 \% \\\text { Percent paid in the month after the sale } & 77 \% \\\text { Percent paid in the second month after the sale } & 3 \%\end{array}$ $$\begin{array} { l l } \text { September } & \$ 120,000 \\\text { October } & \$ 150,000 \\\text { November } & \$ 220,000 \\\text { December (expected) } & \$ 250,000\end{array}$$
-Refer to the Figure.What are the expected cash receipts for November?

• A)$40,000
• B)$190,000
• C)$114,000
• D)$158,700

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Definitions:

Fair Credit Reporting Act

The law that gives protection to a consumer in the case of errors on a monthly credit card statement; consumers are not responsible for a disputed amount or the finance charges that amount accrues, until the error is resolved.

APR

Annual Percentage Rate; a measure that reflects the cost of borrowing money or the return on an investment, including interest and other associated fees, shown as a yearly rate.

Finance Charge

A fee representing the cost of credit or the cost of borrowing money, including interest and other related charges.

Car Loan

A financial agreement in which a lender provides funds to a borrower for the purpose of purchasing a vehicle, to be repaid with interest over a set period.