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Lara Company has budgeted the following credit sales during the current year: August, $40,000; September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown
Lara Company has budgeted the following credit sales during the current year: August, $40,000; September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, and 20% in the second month after sale, and 5% is uncollectible. How much cash can Lara Company expect to collect in October and in November as a result of current and past credit sales?
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