Question
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:
August sales (actual)$49,000
September sales (actual)$59,000
October sales (estimated)$29,000
November sales (estimated)$79,000
December sales (estimated)$69,000
Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.
Budgeted collections from customers in October total:
Multiple Choice
- $35,100.
- $40,000.
- $137,000.
- $51,600.
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