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It is November 1 of Year 1. Sales for Jude Company for November and December of...

It is November 1 of Year 1. Sales for Jude Company for November and December of Year 1 and January (of Year 2) are forecasted to be as follows:

November, 300,000; December 700,000; January, 200,000

100% of sales are credit sales. Of these credit sales, 15% are collected during the month of sale, 25% in the following month, 50% in the second following month, and 10% are never collected. Total sales for September and October of Year 1 were 100,000 and 150,000, respectively.

What is the forecasted amount of total cash collections in January of Year 2?

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Answer #1

Answer: $355,000

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