Kam Department Store reported the following information for 2016: $ \quad \quad \quad \quad \quad \quad \quad \quad \text { October } \quad \text { November } \quad \quad \text { December } $
$\text { Budgeted sales } \quad \$ 1,240,000 \quad \$ 1,160,000 \quad \$ 1,440,000$ All sales are on credit.
$\bullet$Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much cash will Kam receive in November?

Question

Kam Department Store reported the following information for 2016: $ \quad  \quad  \quad  \quad  \quad  \quad  \quad  \quad  \text { October }  \quad \text { November }  \quad  \quad  \text { December } $
$\text { Budgeted sales }  \quad \$ 1,240,000 \quad \$ 1,160,000 \quad \$ 1,440,000$ All sales are on credit.
$\bullet$Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much cash will Kam receive in November?

Quizplus · Accepted Answer

The total credit sales for 2016 (given by F1F1F1S1F1F1F10) are $2,400,000.

According to the information provided, 50% of the customer amounts on account are collected in the month of sale and 50% in the following month.

For the sales made in October (the previous month), Kam will collect 50% of those sales in November. The total sales made in October are $800,000 (this is given by F1F1F1S1F1F1F10 and also calculated as one-third of the total sales for the year).

Therefore, Kam will collect 50% of $800,000 in November, which is $400,000.

Additionally, Kam will collect 50% of the sales made in November (which are not given in the information provided), but we don't know when those sales will be collected.

Adding up the $400,000 that Kam will collect in November to the $800,000 of sales made in October gives us a total of $1,200,000.

Therefore, the answer is C) $1,200,000.

Kam Department Store Reported the Following Information for 2016 October November December \quad \quad \quad \quad \quad \quad \quad \quad \text { October } \quad \text { November } \quad \quad \text { December } October November December

Kam Department Store Reported the Following Information for 2016 $\quad \quad \quad \quad \quad \quad \quad \quad \text { October } \quad \text { November } \quad \quad \text { December }$