Sharon Corporation collects 15% in the second month following sale,45% in the month following sale and 35% of a month's sales in the month of sale.The company has found that 5% of their sales are uncollectible.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in November is budgeted to be

Question

Sharon Corporation collects 15% in the second month following sale,45% in the month following sale and 35% of a month's sales in the month of sale.The company has found that 5% of their sales are uncollectible.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in November is budgeted to be

Quizplus · Accepted Answer

D)
Sept.Sales $280,000 × 15% = $42,000
Oct.Sales 330,000 × 45% = 148,500
Nov.Sales 260,000 × 35% = 91,000
Total $281,500

Sharon Corporation Collects 15% in the Second Month Following Sale,45