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Scranton Company expects to begin operating on July 1, Year 1. The company's master budget contained the following operating expense budget: Salary expense Sales
Scranton Company expects to begin operating on July 1, Year 1. The company's master budget contained the following operating expense budget: Salary expense Sales commissions, 5% of sales July August September $ 36,000 $ 36,000 $ 36,000 30,000 32,000 24,000 Utilities 2,800 2,800 2,800 Depreciation on store equipment 1,000 1,000 1,000 Rent 7,200 7,200 7,200 Miscellaneous 1,800 2,800 1,900 Total operating expenses $ 78,800 $ 81,800 $ 72,900 Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. What is the total amount of expected cash payments for operating expenses in the month of September?
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