Diely Company has the following sales budget: $$\begin{array}{l}
&\text { July }& \text { August }& \text { September }\

\text { Budgeted Sales }&{ £ 105,000 }&{ £ 211,000 }&{ £ 134,000 }
\end{array}$$ Credit sales represent 80 per cent of budgeted sales. Of the credit sales, 20 per cent is collected in the month of the sale, 60 per cent in the month after the sale, and the remaining 15 per cent is collected two months after the sale. Five per cent of all sales are uncollectible and written-off. Cash receipts from sales in September amounted to
A)£169,150.
B)£135,320.
C)£107,200.
D)£162,120.

Question

Diely Company has the following sales budget: $$\begin{array}{l}
&\text { July }& \text { August }& \text { September }\

\text { Budgeted Sales }&{ £ 105,000 }&{ £ 211,000 }&{ £ 134,000 }
\end{array}$$ Credit sales represent 80 per cent of budgeted sales. Of the credit sales, 20 per cent is collected in the month of the sale, 60 per cent in the month after the sale, and the remaining 15 per cent is collected two months after the sale. Five per cent of all sales are uncollectible and written-off. Cash receipts from sales in September amounted to
A)£169,150.
B)£135,320.
C)£107,200.
D)£162,120.

Quizplus · Accepted Answer

The Answer of Diely Company has the following sales budget: $$\begin{array}{l}
&\text { July }& \text { August }& \text { September }\

\text { Budgeted Sales }&{ £ 105,000 }&{ £ 211,000 }&{ £ 134,000 }
\end{array}$$ Credit sales represent 80 per cent of budgeted sales. Of the credit sales, 20 per cent is collected in the month of the sale, 60 per cent in the month after the sale, and the remaining 15 per cent is collected two months after the sale. Five per cent of all sales are uncollectible and written-off. Cash receipts from sales in September amounted to
A)£169,150.
B)£135,320.
C)£107,200.
D)£162,120.

Diely Company Has the Following Sales Budget Credit Sales Represent 80 Per Cent of Budgeted Sales