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Item 9 Item 9 Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases

Item 9 Item 9 Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Material purchases January $ 13,060 , February 15,170, March 11,990. Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,700. The budgeted cash payments for materials in January are:

$14,115.

$10,380.

$7,700.

$20,760.

$14,230.

The Gardner Company expects sales for October of $253,000. Experience suggests that 45% of sales are for cash and 55% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $70,500. What is the amount of cash expected to be collected in October?

$113,850.

$183,425.

$126,500.

$253,925.

$184,350.

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