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McEwen Company Has Budgeted the Following Credit Sales During the Last

Question 127

Multiple Choice

McEwen Company has budgeted the following credit sales during the last four months of the year: September, $14,000; October, $20,000; November $16,000; December, $33,000. Experience has shown that payment for the credit sales is received as follows: 30% in the month of sale, 55% in the first month after sale, 10% 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?


A) $12,400
B) $17,200
C) $15,800
D) $18,850

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