Benton Company's Sales Budget Shows the Following Expected Total Sales

question 55

Multiple Choice

Benton Company's sales budget shows the following expected total sales: $\begin{array}{lc}\text { Month } & \text { Sales } \\\text { January } & \$ 25,000 \\\text { February } & \$ 30,000 \\\text { March } & \$ 35,000 \\\text { April } & \$ 40,000\end{array}$ The company expects 80% of its sales to be on account (credit sales) .Credit sales are collected as follows: 25% in the month of sale and 72% in the month following the sale,with the remainder being uncollectible and written off.The total cash receipts during April would be:

• A) $16,000.
• B) $28,160.
• C) $24,640.
• D) $36,160.

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