(Appendix 10A)Taft Corporation Collects Cash from Customers as Follows: 60

question 20

Multiple Choice

(Appendix 10A) Taft Corporation collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December. Budgeted sales are all on credit and amount to: May $600,000
June 700,000
July 500,000
August 600,000
What is the budgeted amount of accounts receivable at the end of August?

• A)$353,000
• B)$340,000
• C)$329,000
• D)$377,000

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Definitions:

Contract Law

The body of law governing the formation, execution, and enforcement of agreements between parties.

Frustration

A legal doctrine freeing both parties from their contractual obligations if an unexpected event renders the contract impossible to fulfill.

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.

Statute

A written law passed by a legislative body.