[The Following Information Applies to the Questions Displayed Below

question 88

Multiple Choice

[The following information applies to the questions displayed below.]
On October 1 of the current year,Molloy Corporation prepared a cash budget for October,November,and December.All of Molloy's sales are made on account.The following information was used in preparing estimated cash collections:
Approximately 60% of all sales are collected in the month of the sale,30% is collected in the following month,and 10% is collected in the month thereafter.
-Budgeted collections from customers in December total:

• A)$55,000.
• B)$60,000.
• C)$64,000.
• D)$59,000.

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Definitions:

Common Stock

A type of financial security that represents ownership in a corporation, giving holders a share of the firm's profits and voting rights.

Accounts Payable

Accounts payable are liabilities or amounts owed by a company to its creditors for goods and services purchased on credit.

Accounts Receivable

Financial obligations of customers towards a business for provided goods or services, yet to be remunerated.

Office Supplies

Consumable items used in an office environment for day-to-day operations, such as paper, pens, and toner.