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

question 82

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 December?

• A)$50,000
• B)$179,000
• C)$218,900
• D)$250,000

---

Definitions:

Production Function

A production function describes the relationship between inputs utilized in production and the output generated from those inputs.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all inputs (labor, capital, etc.).

Input

The resources, materials, or energy used in the production process to generate output.

Factors Of Production

The inputs used in the creation of goods or services in order to make an economic profit, including land, labor, capital, and entrepreneurship.