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.

---

Definitions:

Duress

The use of force, coercion, or threats to compel someone to act against their will or to force them into a contractual agreement.

Coercion

The practice of persuading someone to do something by using force or threats.

Consumer Contracts Law

The body of law that governs agreements between individuals and businesses selling goods and services to consumers.

Civil Code

A systematic collection of laws designed to deal comprehensively with the core areas of private law such as property, family, and contracts.