Fresplanade Co. had the following historical collection pattern for its credit sales:
75% collected in the month of sale
12% collected in the first month after month of sale
8% collected in the second month after month of sale
3% collected in the third month after month of sale
2% uncollectible
The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
The estimated total cash collections by Fresplanade Co. during November from collection of accounts receivable is:
A) $113,160.
B) $101,400.
C) $143,640.
D) $125,640.
E) $102,420.
Correct Answer:
Verified
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