Cima C01 Exam Question No 17

Question No 17:

What is the divisionalisation and controlling people
Centralization - Advantages?
The following details have been extracted from the receivables records of X:
Invoices paid in the month after sale             60%
Invoices paid in the second month after sale        20%
Invoices paid in the third month after sale         15%
Bad debts                         5%
Credit sales for June to August 2011 are budgeted as follows:
June                             $100,000
July                             $150,000
August                             $130,000
Customers paying in the month after sale are entitled to deduct a 2% settlement discount.
Invoices are issued on the last day of the month.
The amount budgeted to be received in September 2011 from credit sales is:

A. $115,190
B. $116,750
C. $121,440
D. $123,000

Answer: C