All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% i
n the month following sale, and the rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budgeted sales data for the company: What is the amount of cash that should be collected in March? Select one: a. $39,000 b. $37,000 c. $27,500 d. $51,000
1 answer:
Answer: d. $51,000
Explanation:
In March the following will be collected as per the method of collection for Gaylord Company.
1. 35% of sales in March
2. 45% of sales in February
3. 100% - 35% - 45% = 20% of sales in January.
= (35% * 40,000) + (45% * 60,000) + (20% * 50,000)
= 14,000 + 27,000 + 10,000
= $51,000
I have attached the missing part of the question.
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Answer:
The question is missing the options which can be found in the attached.
The correct option is banker's acceptance
Explanation:
Banker's acceptance is a guarantee by a bank to the exporting party to pay a sum of money at specific date.
In international business, exporters would require additional security against their receivable usually request for a banker's acceptance also known as bill of exchange.
The bank pays the exporter a discounted amount as agreed then chase the importer for the full value of the transaction.The difference between the discounted amount paid by the bank and the full value recoverable from the importer is the bank's margin.
