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Justin Company's budget includes the following credit sales for the current year: September, $33,000; October, $44,000; November, $38,000; December, $40,000. Experience has shown that payment
Justin Company's budget includes the following credit sales for the current year: September, $33,000; October, $44,000; November, $38,000; December, $40,000. Experience has shown that payment for the credit sales is received as follows: 10% in the month of sale, 65% in the first month after sale, 23% in the second month after sale, and 2% is uncollectible.
How much cash can Justin Company expect to collect in November as a result of current and past credit sales? Multiple Choice $37,390. $38,000. $42,790. $39,990. $28,590.
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