Figure 8-6 the Records of Morgantown, Inc

question 115

Multiple Choice

Figure 8-6 The records of Morgantown, Inc.show the following forecasted sales:
Collection pattern:
60 percent in month of sale
40 percent in month following the sale
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of next month's sales.
Refer to Figure 8-6. How much is Accounts Receivable as of October 31?

• A) $420,000
• B) $460,000
• C) $240,000
• D) none of the above

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Definitions:

Laspeyres Price Index

Amount of money at current year prices that an individual requires to purchase a bundle of goods and services chosen in a base year divided by the cost of purchasing the same bundle at base-year prices.

Price Changes

Refers to the variation in the cost of goods and services over time, often influenced by factors such as supply and demand, inflation, and market competition.

Consumption

The act of using goods and services to satisfy needs or desires.

Time Constraint

A limitation or restriction on the period within which something can be achieved.