Budgeted sales in Allen Company over the next four months are given below:

September

October

November

December

Budgeted Sales

$$165,000$

$$188,000$

$$166,000$

$$137,000$

Twenty$-$five percent of the company's sales are for cash, and $75\%$ are on account. Collections for sales on account follow a stable pattern as follows: $50\%$ of a month's sales are collected in the month of sale, $30\%$ are collected in the month following sale, and $15\%$ are collected in the second month following sale. The remainder is uncollectible. Given these data, what should be cash collections for December?

Question $9$Answer

a$.$

$$144,125$

b$.$

$$92,750$

c$.$

$$109,875$

d$.$

$$85,625$