Question
Avery Manufacturing has the following sales budgets for the fourth quarter. Cash sales Credit sales October $580,400 $232,900 November 624,800 344,000 December 783,610 398,700 The
Avery Manufacturing has the following sales budgets for the fourth quarter.
| Cash sales | Credit sales | |
| October | $580,400 | $232,900 |
| November | 624,800 | 344,000 |
| December | 783,610 | 398,700 |
The accounting manager has analyzed cash collections and determined that credit sales are collected 60% in the month of sale, 25% in the month following the sale, and 15% in the 2ndmonth following sale.
How much cash will Avery collect in December?
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Accounting Principles
Authors: Jerry J Weygandt
10th Edition
1118009282, 9781118009284
