Hewitt Company expects cash sales for July of $15,000, and a 22% monthly increase during August and September. Credit sales of $10,000 in July should be followed by 30% increases during August and September
What are budgeted cash sales and budgeted credit sales for September respectively?
A) $19,500 and $12,200
B) $25,350 and $14,884
C) $22,326 and $16,900
D) $18,300 and $13,000
C
Explanation: C)
Cash sales $15,000 × 1.22% = $18,300 × 1.22% = $22,326;
Credit sales $10,000 × 1.30% = $13,000 × 1.30 % = $16,900
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