Avery Manufacturing has the following sales budgets for the fourth quarter.
The accounting manager has analyzed cash collections and determined that credit sales are collected 70% in the month of sale,20% in the month following the sale,and 10% uncollectible.How much cash will Avery collect in November?
A) $865,600
B) $912,180
C) $787,830
D) $693,600

Question

Avery Manufacturing has the following sales budgets for the fourth quarter.
  The accounting manager has analyzed cash collections and determined that credit sales are collected 70% in the month of sale,20% in the month following the sale,and 10% uncollectible.How much cash will Avery collect in November? 
A) $865,600 
B) $912,180 
C) $787,830 
D) $693,600

Quizplus · Accepted Answer

$624,800 + $344,000 x 70% + $232,900 x 20% = $912,180

Avery Manufacturing Has the Following Sales Budgets for the Fourth