Farmerlands,Inc.has budgeted sales for the months of September and October at $304,000 and $272,000,respectively.Monthly sales are 80% credit and 20% cash.Of the credit sales,50% are collected in the month of sale,and 50% are collected in the following month.Calculate cash collections for the month of October.

Question

Quizplus · Accepted Answer

C)
Calculations of collections for the month of October:
Collections for October sales
 11ea8870_3624_134e_bb89_4d319dd7669d_TB5025_00 Collections for September sales
 11ea8870_3624_3a5f_bb89_b5ae60fd82b0_TB5025_00