Question
The following information is available about the Ashton Companys operations: The cash balance on December 1 will be $40,000. Actual sales for October and November
The following information is available about the Ashton Companys operations: The cash balance on December 1 will be $40,000. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 61,000 $ 67,000 $ 83,300 Sales on account 409,000 529,000 595,000 Sales on account are collected over a three-month period in the following ratio: 18% collected in the month of sale, 62% collected in the month following sale, and 19% collected in the second month following sale. The remaining 1% are uncollectible. What are the total cash collections for December? A. $595,000. B. $435,080. C. $596,090. D. $405,690. E. $327,980.
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