Benjamin Corporation Began Its Operations on September 1 of the Current

question 93

Multiple Choice

Benjamin Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. Refer to the information provided for Benjamin Corporation. The cash collections from accounts receivable in November are:

• A) $305,200.
• B) $294,000.
• C) $235,200.
• D) $381,500.