[The Following Information Applies to the Questions Displayed Below

question 58

Multiple Choice

[The following information applies to the questions displayed below.]
Ross Corporation makes all sales on account.The June 30th balance sheet balance in its accounts receivable is $400,000,of which $240,000 pertain to sales that were made during June.Budgeted sales for July are $1,250,000.Ross collects 70% of sales in the month of sale;20% in the following month;and the final 10% in the second month after the sale.
-What are Ross's budgeted collections for July?

• A)$1,275,000
• B)$939,000
• C)$1,195,000
• D)$915,000

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Definitions:

Trade Discount

A reduction in the listed price of a good or service offered by a seller to a buyer, usually based on the quantity purchased or the buyer's status.

Trade Discount

A reduction from the list price granted by a seller to a buyer in a commercial transaction, typically based on volume or early payment.

Trade Discount

A reduction in the list price granted by a seller to a buyer, often based on the quantity purchased or a trade relationship.

Trade Discount

A reduction in the listed price of goods or services offered to traders in the business-to-business market.