Question
Cash sales are 10 percent of total sales each month for Howard, Inc. Based on past months aging schedule, sales on account have been collected
Cash sales are 10 percent of total sales each month for Howard, Inc. Based on past months aging schedule, sales on account have been collected as follows: 65 percent in the month of sale, 20 percent in the month after the sale, and the remaining 15 percent two months after the sale. Sales for the next three months are projected as follows: October, $185,000; November, $175,000; and December, $190,000. Accounts receivable on September 30 was $76,000. 11. (1 point) What is the total expected cash collections in the month of December for Howard, Inc.? a. $142,500 b. $186,625 c. $130,150 d. $171,000 e. $205,250 f. $167,625 g. $186,250 h. None of the above 12. (1 point) What is the budgeted accounts receivable balance on December 31 for Howard, Inc.? a. $83,475 b. $92,750 c. $66,500 d. $59,850 e. $92,150 f. $59,375 g. $79,375 h. None of the above
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