Ruiz Co.'s budget includes the following credit sales for the current year: September,$145,000; October,$136,000; November,$120,000; December,$157,000.Credit sales are collected as follows: 15% in the month of sale,50% in the first month after sale,and 35% in the second month after sale.How much cash can the company expect to collect in December as a result of current and past credit sales?

Question

Quizplus · Accepted Answer

To calculate the cash collections in December from credit sales, we consider the sales from October, November, and December, applying the given percentages for collections:- From December sales ($157,000), 15% is collected in December: $157,000 * 15% = $23,550.- From November sales ($120,000), 50% is collected in December: $120,000 * 50% = $60,000.- From October sales ($136,000), 35% is collected in December: $136,000 * 35% = $47,600.Adding these amounts gives the total cash collections in December: $23,550 + $60,000 + $47,600 = $131,150.

Ruiz Co'S Budget Includes the Following Credit Sales for the Current