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Fresplanade Co

Question 68

Multiple Choice

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:
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. 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:

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