Home Corporation Will Open a New Store on January 1

question 58

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. The March 31 balance in accounts receivable will be:

• A)$100, 000
• B)$60, 000
• C)$95, 000
• D)$75, 000

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Definitions:

Comprehensive General Liability

Insurance that covers a business for bodily injury, personal injury, and property damage caused by the company's operations, products, or injuries that occur on the company's premises.

Financial Support

Funding or monetary assistance provided to help an individual, organization, or project.

Physical Injuries

Harm or damage inflicted to a person's body, excluding mental or emotional harm.

Good Faith

The sincere intention to deal fairly with others, without taking advantage of them, especially in a contractual or negotiation context.