Question
The following sales budget has been prepared: MonthCash SalesCredit Sales September$100,000$220,000 October$115,000$190,000 November$125,000$200,000 December$130,000$180,000 Collections of credit sales are 50% in the month of sale,
The following sales budget has been prepared:
MonthCash SalesCredit Sales
September$100,000$220,000
October$115,000$190,000
November$125,000$200,000
December$130,000$180,000
Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale.No uncollectible accounts are expected.
What are the estimated cash collections in December?
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Cost Accounting
Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy
3rd Edition
0070110263, 9780070110267
