Compton Company Expects the Following Total Sales: the Company Expects

question 84

Multiple Choice

Compton Company expects the following total sales: The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is: $\begin{array}{|l|c|}\hline {\text { Month }} & \text { Sales } \\\hline \text { March } & \$ 30,000 \\\hline \text { April } & \$ 20,000 \\\hline \text { May } & \$ 30,000 \\\hline \text { June } & \$ 25,000 \\\hline\end{array}$

• A) $12,240.
• B) $12,600.
• C) $20,400.
• D) $21,000.

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Definitions:

Supermarket Chains

Large retail organizations consisting of multiple supermarket locations, offering a wide variety of food and household products.

Type of Item

Refers to the categorization or classification of an item based on its attributes, purpose, or other distinguishing characteristics.

Blocking

A technique used in experimental design to minimize the effects of variable confounding by grouping similar experimental units together and randomly assigning treatments within these blocks.

Incentive

A positive or negative environmental stimulus that motivates behavior.