Question
Four of Wands, LLC generated $255,000 in sales during September 2021. Of this amount, 30% was for cash. The remaining 70% of sales were made
Four of Wands, LLC generated $255,000 in sales during September 2021. Of this amount, 30% was for cash. The remaining 70% of sales were made on account. The October 2021 sales on account were $180,000, which accounted for 60% of the total sales during the month.The company budgeted $350,000 in sales for November 2021 and expects sales in December 2021 to be 10% lower than November's sales. 15% of the total budgeted sales are for cash; the remaining budgeted sales are expected to be made on account. Sales on account carry credit terms of net 30.Historically, 70% of sales on account are collected in the month following the month of sale. 25% of sales on account are collected in the second month following the month of sale. 4% of sales on account are collected in the third month following the month of sale. The remaining 1% is deemed uncollectible.Given the above information, calculate the total expected cash receipts in December.
A.
$377,450
B.
$260,390
C.
$323,150
D.
$327,920
E.
$307,640
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