On October 1 of the current year, Molloy Corporation prepared a cash budget for October,...
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Accounting
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) $ 40,000 September sales (actual) $ 50,000 October sales (estimated) $ 20,000 November sales (estimated) $ 70,000 December sales (estimated) $ 60,000 Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. Budgeted collections from customers in October total: Select one: a. $110,000. b. $27,000. c. $31,000. d. $39,000.
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