Reference no: EM131870242

Problem - Use the following information to answer the five questions in the quiz: Door & Window Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows:

August $120,000

September 200,000

October 230,000

The company expects to sell 40% of its merchandise for cash. Of the sales on account, 25% are expected to be collected in the month of the sale and the remainder in the following month.

1. What are the total credit sales for August:

$120,000

$72,000

$48,000

None of the above

2. What are the total credit sales for October:

$92,000

$120,000

$138,000

None of the above

3. What are the total cash collections for August?

$120,000

$72,000

$48,000

$66,000

4. What are the total cash collections for September?

$164,000

$80,000

$200,000

$120,000

5. What are the total cash collections for October?

$230,000

$138,000

$216,500

$92,000