Author Question: A control account is used to record the details of the individual subsidiary accounts. a. True b. ... (Read 159 times)

bcretired · **on:** Jul 5, 2018

A control account is used to record the details of the individual subsidiary accounts.
a. True
b. False

Indicate whether the statement is true or false

Question 2

For January, budgeted cash collections are ________.

Answer the following questions using the information below:

The following information pertains to the January operating budget for Casey Corporation.

Budgeted sales for January 200,000 and February 100,000.
Collections for sales are 60 in the month of sale and 40 the next month.
Gross margin is 30 of sales.
Administrative costs are 10,000 each month.
Beginning accounts receivable is 20,000.
Beginning inventory is 14,000.
Beginning accounts payable is 65,000. (All from inventory purchases.)
Purchases are paid in full the following month.
Desired ending inventory is 20 of next month's cost of goods sold (COGS).

A) 200,000
B) 140,000
C) 120,000
D) 20,000