Answer:
The amount of cash received from total sales during the month of June is $890,000
Thus, the correct option is e. $890,000
Explanation:
The computation of total cash received in the month of June is shown below:
= Cash Sales + Credit sales
where,
Cash sale is 25% of June month = 25% × $950,000 = $237,500
So, credit sale would be 75%
And Credit sales proportion is :
30 % of (75% of June month) = $213,750
65% of (75% of May month) = $438,750
So total cash sales = Cash sale + 30 % of (75% of June month) + 65% of (75% of May month)
= $237,500 + $213,750 + $438,750
= $890,000
The 5% is not considered while computing the total cash received part.
Hence, the amount of cash received from total sales during the month of June is $890,000
Thus, the correct option is e. $890,000
