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[ The following information applies to the questions displayed below. ] On October 1 of the current year, Molloy Corporation prepared a cash budget for
[The following information applies to the questions displayed below.]
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) | $ 31,000 |
September sales (actual) | $ 41,000 |
October sales (estimated) | $ 28,000 |
November sales (estimated) | $ 61,000 |
December sales (estimated) | $ 51,000 |
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 October total
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