Thursday, 1 October 2015

Cima P1 Exam Question No 22

Question No 22:

A company commenced business on 1 August. Total sales revenue in August was $200,000 and is expected to increase at a rate of 2% per month. Credit sales represent 60% of total sales revenue and the remaining 40% is cash sales. The credit period allowed is one month. Bad debts are expected to be 3% of credit sales but the remaining credit sales customers are expected to pay on time.
The estimated receipts in September from cash and credit sales are:

A.
$195,552
B.
$196,400
C.
$198,000
D.
$201,600

Answer: C

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