The amount of cash collected during the month of June should be:

Question

Quizplus · Accepted Answer

According to the question, the total sales for the month of June were $40,000. Out of this amount, 90% was collected in cash, which is equal to 0.90 x $40,000 = $36,000. However, there was a check of $1,600 that bounced, which means the amount collected in cash was actually $36,000 - $1,600 = $34,400. Additionally, there was a promissory note of $6,000 that will be collected later, so the total amount of cash collected during the month of June is $34,400 + $6,000 = $40,400. Therefore, the best choice is C.

The Amount of Cash Collected During the Month of June