Question
Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month
Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month after month of sale 8% collected in the second month after month of sale 3% collected in the third month after month of sale 2% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
July | $72,000 |
August | $84,000 |
September | $96,000 |
October | $108,000 |
November | $120,000 |
December | $102,000 |
The estimated total cash collections by Fresplanade Co. during November from collection of accounts receivable is:
A. | $113,160. |
B. | $101,400. |
C. | $143,640. |
D. | $125,640. |
E. | $102,420. |
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