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% in the 2^nd month following sale.How much cash will Avery collect in December?

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% in the 2^nd month following sale.How much cash will Avery collect in December?

Quizplus · Accepted Answer

$806,900 + $398,700 x 70% + $344,000 x 20% + $232,900 x 10% = $806,900 + $279,090 + $68,800 + $23,290 = $1,178,080

Avery Manufacturing Has the Following Sales Budgets for the Fourth