For Dubinsky Company,experience has shown that payment for the credit sales is received as follows: 10% in the month of sale,65% in the first month after sale,20% in the second month after sale,and 5% uncollectible.Dubinsky Company has budgeted the following credit sales during the last four months of the year: September,$20,000;October,$24,000;November $22,000;December,$28,000.How much cash can Dubinsky Company expect to collect in November as a result of credit sales?

Question

Quizplus · Accepted Answer

C)
Sept.$20,000 × 20% = $4,000
Oct.24,000 × 65% = 15,600
Nov.22,000 × 10% = 2,200
Total $21,800

For Dubinsky Company,experience Has Shown That Payment for the Credit