Solved

Doitall Company
Doitall Company Makes All Its Sales on Account

Question 110

Multiple Choice

Doitall Company
Doitall Company makes all its sales on account. The company's accounts receivable payment experience is as follows:  Percent paid in the month of sale 18% Percent paid in the month after the sale 77% Percent paid in the second month after the sale 3%\begin{array}{lc}\text { Percent paid in the month of sale } & 18 \% \\\text { Percent paid in the month after the sale } & 77 \% \\\text { Percent paid in the second month after the sale } & 3 \%\end{array} The company provided information on sales as follows:  September $120,000 October $150,000 November $220,000 December (expected)  $250,000\begin{array} { l l } \text { September } & \$ 120,000 \\\text { October } & \$ 150,000 \\\text { November } & \$ 220,000 \\\text { December (expected) } & \$ 250,000\end{array}
-Refer to Doitall Company. What are the expected cash receipts for December?


A) $50,000
B) $179,000
C) $218,900
D) $250,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents