McEwen Company has budgeted the following credit sales during the last four months of the year: September,$16,000;October,$22,000;November $21,000;December,$24,000.Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale,55% in the first month after sale,20% in the second month after sale,and 5% uncollectible.How much cash can McEwen Company expect to collect in November as a result of credit sales?

Question

Quizplus · Accepted Answer

B)
Sept.$16,000 × 20% = $3,200
Oct.22,000 × 55% = 12,100
Nov.21,000 × 20% = 4,200
Total $19,500

McEwen Company Has Budgeted the Following Credit Sales During the Last