Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Justin Company's budget includes the following credit sales for the current year: September, $44,000; October, $55,000; November, $49,000; December, $51,000. Experience has shown that payment

Justin Company's budget includes the following credit sales for the current year: September, $44,000; October, $55,000; November, $49,000; December, $51,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales?

A $49,730.

B $49,000.

C $38,330.

D $47,130.

E $52,530.

ignore: Q36

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Quality Auditing

Authors: Lance B. Coleman

1st Edition

087389913X, 978-0873899130

More Books

Students also viewed these Accounting questions