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Hello, could someone please help me solve this problem? 5. Blue Sky, Inc. generated $265,000 in sales during September 2020. Of this amount, $65,000 was
Hello, could someone please help me solve this problem?
5. Blue Sky, Inc. generated $265,000 in sales during September 2020. Of this amount, $65,000 was for cash. The remaining $200,000 of sales were made on account. The company budgeted $350,000 in sales for October 2020 and expect sales in November 2020 to be 10% lower than October's sales. 20% of the total budgeted sales are for cash; the remaining budgeted sales are expected to be made on account. The historical collection pattern for sales made on account is as follows: month of sale 60% first month following the month of sale 35% second month following the month of sale The balance is expected to be uncollectible. 4% Given the above information, calculate the total cash receipts in November. a. $322,100 b. $367,800 c. $257,200 d. $320,200 e. $321,390Step by Step Solution
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