Benton Company's Sales Budget Shows the Following Expected Total Sales

question 93

Multiple Choice

Benton Company's sales budget shows the following expected total sales: The company expects 80% of its sales to be on account (credit sales) . Credit sales are collected as follows: 25% in the month of sale, 72% in the month following the sale with the remainder being uncollectible and written off. The total cash receipts during April would be: $$\begin{array} { | l | c | } \hline { \text { Month } } & \text { Sales } \\\hline \text { January } & \$ 25,000 \\\hline \text { February } & \$ 30,000 \\\hline \text { March } & \$ 35,000 \\\hline \text { April } & \$ 40,000 \\\hline\end{array}$$

• A) $16,000.
• B) $28,160.
• C) $24,640.
• D) $36,160.

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