All of Porter Corporation's Sales Are on Account

question 136

Multiple Choice

All of Porter Corporation's sales are on account. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data for the company: Cash receipts in April are expected to be:

• A)$420,000
• B)$545,000
• C)$605,000
• D)$185,000

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Definitions:

Breach of a Condition

A violation of a stipulated essential term or requirement in a contract, potentially leading to the right to terminate the agreement and seek redress.

Sale of Goods Act

A legal act regulating the sale of goods, ensuring certain standards like goods being as described, of satisfactory quality, and fit for purpose.

Distance shopping

Refers to the purchasing of goods or services by consumers from a seller without face-to-face interaction, typically through digital means.

Bankruptcy and Insolvency Act

A statute that governs bankruptcy and insolvency proceedings, providing a legal framework for the resolution of financial distress in individuals and corporations.