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
Correct Answer:
Verified
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