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- $$120000
September- $200000
October- $230000
1. 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. What are the total credit sales for August:
a. $120000
b. $72000
c. $48000
d. none of the above
2. What are the total credit sales for October:
a. $92000
b. $120000
c. $138000
d. none of the above
3. What are the total cash collections for August?
a. $120000
b. $72000
c. $48000
d. $66000
4.What are the total cash collections for September?
a. $164000
b. $80000
c. $200000
d. $120000
5. What are the total cash collections for October?
a. $230000
b. $13800
c. $216500
d. $92000