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# 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...

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

\$120,000

September

200,000

October

230,000

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: (Points : 3)
\$120,000
\$72,000
\$48,000
None of the above

2. What are the total credit sales for October: (Points : 3)
\$92,000
\$120,000
\$138,000
None of the above

3. What are the total cash collections for August? (Points : 3)
\$120,000
\$72,000
\$48,000
\$66,000

4. What are the total cash collections for September? (Points : 3)
\$164,000
\$80,000
\$200,000
\$120,000

5. What are the total cash collections for October? (Points : 3)
\$230,000
\$138,000
\$216,500
\$92,000

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