McCloud Company Has Budgeted the Following Credit Sales During the Last

question 183

Multiple Choice

McCloud Company has budgeted the following credit sales during the last four months of the year: September, $16,000; October, $22,000; November $21,000; December, $24,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% uncollectible. How much cash can McCloud Company expect to collect in November as a result of credit sales?

• A) $16,400
• B) $19,800
• C) $16,350
• D) $19,550

---

Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Response

A learned reaction to a previously neutral stimulus, established through classical conditioning.

Learned Response

A reaction or behavior that an individual acquires through conditioning or experience in response to a specific stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus in classical conditioning.