Budgeted sales at GLOBAL MANU over the next four months are given below: ...
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Accounting
Budgeted sales at GLOBAL MANU over the next four months are given below:
September
$140,000
October
$150,000
November
$170,000
December
$130,000
The company estimates that 35% of the sales are for cash, and 65% on credit. Collections for sales on account follow a stable pattern as follows: 50% will be collected in the month of the sale, 30% in the month following the sale, 15% in the second month following the sale, and the rest uncollectible. What would be the expected cash receipts for December?
1)
$338,000
2)
$184,000
3)
$135,525
4)
$87,750
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