10 Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) 100,000 105,000 103,000 107,000 September October November December The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: $520,000 $535,000 $522,000 $516,500

10 Skullduggery, Inc. reports the following information from its sales budget: Budgeted sales (units) 100,000 105,000 103,000 107,000 September October November December The budgeted sales price per unit is $5. All sales are on credit and are expected to be collected 10% in the month of sale, 60% in the month following sale, and the remaining 30% in the second month following sale. The total amount of cash expected to be received from customers in December is: $520,000 $535,000 $522,000 $516,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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19. SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: June July August $200,000 120,000 150,000 How much is total cash collected during August? A) $145,920 B) $105,120 C) $88,800 D) $144,000
C2
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