Reference no: EM132083528

Question - Berkley Co.'s sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $15,000 from November sales and $45,000 from December sales.

Assume that total sales for January are budgeted to be $65,000. What are the expected cash receipts for January from the current and past sales?

A. $28,500 B. $71,193 C. $71,900 D. $65,500 E. $80,500

Assume that total sales for January and February are budgeted to be $65,000 and $125,000, respectively. What are the expected cash receipts for February from current and past sales?

A. $87,500 B. $91,500 C. $54,500 D. $88,357 E. $89,500