Question 4

Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month after month of sale 9% collected in the second month after month of sale 3% collected in the third month after month of sale 1% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:

July	$	90,000
August	$	102,000
September	$	114,000
October	$	126,000
November	$	138,000
December	$	120,000

The estimated total cash collections by Fresplanade Co. during November from collection of accounts receivable is:

Multiple Choice

• $131,940.

• $120,060.

• $177,300.

• $154,800.

• $121,320.

Fresplanade Co. had the following historical collection pattern for its credit sales: 75% collected in the month of sale 12% collected in the first month after month of sale 8% collected in the second month after month of sale 4% collected in the third month after month of sale 1% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:

July	$	87,000
August	$	99,000
September	$	111,000
October	$	123,000
November	$	135,000
December	$	117,000

The estimated cash collection by Fresplanade Co. during August from July and August credit sales is:

Multiple Choice

• $98,850.

• $94,380.

• $102,090.

• $65,250.

• $84,690.