登录之后可查看解析

Answer (C) is correct . Prudent’s cash collections can be calculated as follows: ? Collections Total Credit Sales Sales April May April $700,000 $560,000 $392,000 $140,000 May 750,000 600,000 420,000 Cash collections on credit sales $392,000 $560,000 Cash sales 140,000 150,000 Proceeds from sale of equipment 25,000 Total cash received $532,000 $735,000

Answer (A) is incorrect because The amount of $560,000 results from failing to include cash sales and the proceeds from the sale of the equipment.
Answer (B) is incorrect because The amount of $702,500 results from failing to consider uncollectible accounts and from deducting cash sales before calculating receivables.
Answer (D) is incorrect because The amount of $737,500 results from improperly including cash sales in the receivables payment pattern.