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Budgeted sales for ABC Company are as follows: October 2008 November 2008 December 2008 Credit sales$1 700 000 $1 800 000 $1 900 000 Cash
Budgeted sales for ABC Company are as follows:
October 2008November 2008December 2008Credit sales$1 700 000 $1 800 000 $1 900 000 Cash sales$200 000 $200 000 $200 000
All stock is marked up to sell at its invoice cost plus 25 per cent. On average 60 per cent of credit sales are collected in the month of sale, 35 per cent in the month following sale and the remainder is uncollectable. The budgeted cost of goods sold for the month of October is:
$1 360 000 $1 425 000 $1 520 000 None of the given answers
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