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)
$
47,000
September sales (actual)
$
57,000
October sales (estimated)
$
27,000
November sales (estimated)
$
77,000
December sales (estimated)
$
67,000
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 November total:
Multiple Choice
$65,500.
$64,000.
$161,000.
$55,450.
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