Day: April 17, 2021

The table shows a company’s estimated sales. 

• February – Cash Sales £10,000  /  Credit Sales – £15,000
• March – Cash Sales £10,000  /  Credit Sales – £25,000
• April – Cash Sales £10,000  /  Credit Sales – £35,000

Debtors are expected to pay as follows: 

• 60 % in month following sale
• 40 % in second month following sale

How much cash from sales is received in April?

Select ONE answer:

1. £21,000
2. £25,000
3. £31,000
4. £45,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> £10,000 + Feb Sales 15,000 * 0.4 + March Sales 25,000 * 0.6
4. Not correct

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