Quattro Began Operations in April of This Year

question 5

Multiple Choice

Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for June?

• A) $21,000.
• B) $60,000.
• C) $69,000.
• D) $75,000.
• E) None of the other answers are correct.

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Definitions:

Offer of Performance

In contract law, an attempt made by one party to fulfill their part of the agreement, indicating willingness to adhere to the terms of the contract.

Tender

An offer of payment or service in fulfillment of an obligation, such as in contract performance or debt repayment.

Material Breach

A significant violation or failure to perform a contract's stipulated duty, justifying the other party's termination of the agreement.

Nonbreaching Party

An entity or individual in a contract who has not violated any terms of the agreement.