Company has the following sales budget for the last six months of 2014: July $200,000 October $180,000
August 160,000 November 200,000
September 220,000 December 188,000
Historically, the cash collection of sales has been as follows:
65% of sales collected in the month of sale
25% of sales collected in the month following the sale
8% of sales collected in the second month following the sale
2% of sales are uncollectible
Cash collections for September are:.
A. $204,000.
B. $173,400.
C. $199,000.
D. $143,000.
What is the ending balance of accounts receivable for September assuming uncollectible balances are written off during the second month following the sale?
A. $88,300.
B. $97,000.
C. $93,000.
D. $199,00.

Good question my dood

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