Cloudy Company had the following historical collection pattern for its credit sales: 70% collected in the month of sale 12% collected in the first month after month of sale 10% collected in the second month after month of sale 5% collected in the third month after month of sale 3% uncollectible The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:   July $ 92,000 August $ 104,000 September $ 116,000 October $ 128,000 November $ 140,000 December $ 122,000   The estimated cash collection by Cloudy Company during August from July and August credit sales is: Multiple Choice $100,160. $90,880. $102,880. $64,400. $83,840.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cloudy Company had the following historical collection pattern for its credit sales:

70% collected in the month of sale
12% collected in the first month after month of sale
10% collected in the second month after month of sale
5% collected in the third month after month of sale
3% uncollectible

The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:

 

July $ 92,000
August $ 104,000
September $ 116,000
October $ 128,000
November $ 140,000
December $ 122,000

 

The estimated cash collection by Cloudy Company during August from July and August credit sales is:

Multiple Choice

$100,160.

$90,880.

$102,880.

$64,400.

$83,840.

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