Freemore Company has the following sales budget for the last six months of 2018:

Sales are immediately due, however the cash collection of sales, historically, has been as follows:
55% of sales collected in the month of sale,
35% of sales collected in the month following the sale,
7% of sales collected in the second month following the sale, and
3% of sales are uncollectible.
Cash collections for October are ________.

Question

Freemore Company has the following sales budget for the last six months of 2018:

Sales are immediately due, however the cash collection of sales, historically, has been as follows:
55% of sales collected in the month of sale,
35% of sales collected in the month following the sale,
7% of sales collected in the second month following the sale, and
3% of sales are uncollectible.
Cash collections for October are ________.

Quizplus · Accepted Answer

October sales ($187,000 × 0.55) + September sales ($205,000 × 0.35) + August sales ($168,000 × 0.07) = $186,360

Freemore Company Has the Following Sales Budget for the Last