Kam Department Store reported the following information for 2016: $\begin{array}{lr}
&\text { October }&\text { November }&\text { December }\
\text { Budgeted sales }&\$1,240,000&\$1,160,000&\$1,440,000
\end{array}$
-All sales are on credit.
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much cash will Kam receive in November?
A)$580,000
B)$1,300,000
C)$1,200,000
D)$1,160,000

Question

Kam Department Store reported the following information for 2016: $\begin{array}{lr}
&\text { October }&\text { November }&\text { December }\
\text { Budgeted sales }&\$1,240,000&\$1,160,000&\$1,440,000
\end{array}$ 
-All sales are on credit. 
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much cash will Kam receive in November?
A)$580,000
B)$1,300,000
C)$1,200,000
D)$1,160,000

Quizplus · Accepted Answer

Kam will receive 50% of November sales (\$1,160,000) and 50% of October sales (\$1,240,000) in November, totaling \$580,000 + \$620,000 = \$1,200,000.