Justin Company's budget includes the following credit sales for the current year: September,$25,000; October,$36,000; November,$30,000; December,$32,000.Credit sales are collected as follows: 15% in the month of sale,60% in the first month after sale,20% in the second month after sale,and 5% is uncollectible.How much cash can Justin expect to collect in November as a result of current and past credit sales?
A)$19,700.
B)$28,500.
C)$30,000.
D)$31,100.
E)$33,900.

Question

Quizplus · Accepted Answer

In November, Justin Company can expect to collect cash from sales made in September, October, and November. The collections are based on the given percentages for the month of sale, the first month after sale, and the second month after sale. - From September sales ($25,000), 20% is collected in November: $25,000 * 20% = $5,000.- From October sales ($36,000), 60% is collected in November: $36,000 * 60% = $21,600.- From November sales ($30,000), 15% is collected in November: $30,000 * 15% = $4,500.Adding these amounts gives the total cash collections in November: $5,000 + $21,600 + $4,500 = $31,100.

Justin Company's Budget Includes the Following Credit Sales for the Current