Home Corporation Will Open a New Store on January 1

question 1

Multiple Choice

Home Corporation will open a new store on January 1. Based on experience from its other retail outlets, Home Corporation is making the following sales projections: Home Corporation estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. Based on these data, the balance in accounts receivable on January 31 will be:

• A)$40,000
• B)$28,000
• C)$12,000
• D)$58,000

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Definitions:

Months

Units of time, typically used in calendars, that approximately correspond to the period of time it takes for the Moon to orbit the Earth, usually consisting of 28 to 31 days.

Gait

The manner or style of walking, including the rhythm, speed, and pattern of movement.

Disposable Emesis Basin

A single-use basin designed to catch vomit, commonly used in medical settings to maintain hygiene and convenience.

Vomits

The involuntary, forceful expulsion of the contents of one's stomach through the mouth and sometimes the nose.