Harrti Corporation Has Budgeted for the Following Sales: Sales

question 115

Multiple Choice

Harrti Corporation has budgeted for the following sales: Sales are collected as follows: 10% in the month of sale;60% in the month following the sale;and the remaining 30% in the second month following the sale.In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?

• A)$680, 000
• B)$612, 000
• C)$826, 500
• D)$214, 500

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Definitions:

Garage Sale

A casual event typically held at a person's home where used goods such as household items are sold.

Pickup Truck

A vehicle with an enclosed cab and an open cargo area with low sides and tailgate.

Insurable Interest

A requirement for purchasing insurance, indicating the policyholder has a stake in the continued existence of the insured item or person that is subject to potential financial loss.

Risk Of Loss

Refers to the concept in commerce regarding which party bears the liability for goods damaged or destroyed during transportation or storage.