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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) | $ | 47,000 | |
September sales (actual) | $ | 57,000 | |
October sales (estimated) | $ | 27,000 | |
November sales (estimated) | $ | 77,000 | |
December sales (estimated) | $ | 67,000 | |
Approximately 65% of all sales are collected in the month of the sale, 20% is collected in the following month, and 15% is collected in the month thereafter.
Budgeted collections from customers in November total:
Multiple Choice
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$65,500.
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$64,000.
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$161,000.
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$55,450.
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