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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) | $ 44,000 |
September sales (actual) | $ 54,000 |
October sales (estimated) | $ 24,000 |
November sales (estimated) | $ 74,000 |
December sales (estimated) | $ 64,000 |
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.
15.) Budgeted collections from customers in October total: |
$33,000.
$41,400.
$26,400.
$122,000.
16.) Budgeted collections from customers in November total: |
$62,500.
$52,900.
$152,000.
$61,000.
17.) Budgeted collections from customers in December total: |
$57,500.
$60,000.
$162,000.
$56,400.
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