Question
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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