Ratchet Manufacturing anticipates total sales for August, September, and October of $370,000, $295,000, and $305,500 respectivel

Question

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Ratchet Manufacturing anticipates total sales for August, September, and October of $370,000, $295,000, and $305,500 respectivel

y. Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale. Compute the amount of cash received for September.Multiple Choice$498,750.$351,250.$166,250.$277,500.$221,250.

Business

1 answer:

olchik [2.2K] · Answer 1 · 2022-07-28T23:10:46+03:00

Answer:

$351,250

Explanation:

Computation for the amount of cash received for September

September cash sales $73,750

(25% × $295,000)

August credit sales $277,500

(75% × $370,000)

Cash collected in September $351,250

($73,750+$277,500)

Therefore the amount of cash received for September will be $351,250