Pardee Company Makes 30% of Its Sales for Cash and 70

question 7

Multiple Choice

Pardee Company makes 30% of its sales for cash and 70% on account.60% of the account sales are collected in the month of sale,25% in the month following sale,and 12% in the second month following sale.The remainder is uncollectible.The following information has been gathered for Pardee's first year of operations: Total cash receipts in Month 3 will be:

• A)$52,200.
• B)$53,290.
• C)$50,000.
• D)$51,510.

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Definitions:

Forgetting

The loss or decline in the ability to recall or recognize something that was previously learned or experienced.

Prospective Memory

Recalling a previously planned intention or executing a predetermined action at a future date.

Declarative Memory

A type of long-term memory that involves the conscious recall of facts and events.

Self-Referent

The reference to oneself or making something relate directly to oneself.