Nuthatch Corporation Began Its Operations on September 1 of the Current

question 147

Multiple Choice

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November-are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.​
-The cash collections expected in October from accounts receivable are estimated to be

• A)$246,400
• B)$262,500
• C)$210,000
• D)$294,500

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Definitions:

Compliance

The tendency to agree to do things requested by others, often to conform with social norms or expectations.

Reciprocity Norm

A social norm suggesting that people should return the help they have received from others, creating a system of mutual cooperation and support.

Consistency Principle

The psychological tendency to remain aligned with our previous beliefs, attitudes, and behaviors to maintain a sense of self-consistency.

Need for Acceptance

A psychological condition where individuals seek acknowledgment and approval from others to feel valued and connected.