Question
Answer the following questions (#21 and #22) using the information below: Monetary Company has the following...
Answer the following questions (#21 and #22) using the information below:
Monetary Company has the following sales budget for the last six months of 2014:
July $400,000 October $360,000
August 320,000 November 400,000
September 440,000 December 376,000
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, and
2% of sales are uncollectible.
Cash collections for September are:
- A.
$398,000
- B.
$408,000
- C.
$346,800
- D.
$286,000
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