Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
- When do debtors pay their accounts?
A) in the month of sale
B) two months after the sale
C) one month before the sale
D) one month after the sale

Question

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016.  Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-  When do debtors pay their accounts?
A) in the month of sale 
B) two months after the sale 
C) one month before the sale 
D) one month after the sale

Quizplus · Accepted Answer

Past records indicate that 60% of expected receipts are collected in the month of sale and 40% are collected in the month following the sale. This means that debtors pay their accounts one month after the sale.

Use the Information Below to Answer the Following Questions