Budgeted sales at Ikk Eaa Limited over the next four months are given below:   September $150,000 October $160,000 November $180,000 December $140,000   The company estimates that 35% of the sales are for cash, and 65% on credit.  Collections for sales on account follow a stable pattern as follows:   60% will be collected in the month of the sale, 20% in the month following the sale, 15% in the second month following the sale, and the rest uncollectible.  What would be the expected cash receipts for December?   Question 19 options:   1)  $103,600   2)  $142,600   3)  $361,000   4)  $193,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Budgeted sales at Ikk Eaa Limited over the next four months are given below:
 

September
$150,000
October
$160,000
November
$180,000
December
$140,000


 
The company estimates that 35% of the sales are for cash, and 65% on credit.  Collections for sales on account follow a stable pattern as follows:
 
60% will be collected in the month of the sale, 20% in the month following the sale, 15% in the second month following the sale, and the rest uncollectible.  What would be the expected cash receipts for December?

 

Question 19 options:

 

1) 

$103,600

 

2) 

$142,600

 

3) 

$361,000

 

4) 

$193,000

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