contestada

Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for the quarter?

a. $140,000.
b. $121,000.
c. $153,000.
d. $175,000.
e. None of the answers is correct

Respuesta :

Answer:

C. $153,000

Explanation:

The table below explains the collection every month:

Description April May          June           July   August

Sale             $60,000 $80,000 $70,000  

Collection    $18,000 $36,000  $6,000  

                         $24,000 $48,000       $8,000  

                                          $21,000       $42,000   $7,000

Total

collection      $18,000 $60,000  $75,000      $50,000  $7,000

Total collection of the quarter $153,000