Budgeted sales in Acer Corporation over the next four months are given below:September October$120,000 $140,000 $180,000 $160,000November DecemberBudgeted salesThirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of amonth's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second monthfollowing sale. Given these data, cash collections for December should be:Multiple Choice$161,400$141,800$118.700

Cash collection is the activity to receive payment from the customers to whom the sales have been…

Answered: ns for sales on account follow a stable…

Business

Accounting

ns for sales on account follow a stable p h following sale, and 20% are collectedi

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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Question

Budgeted sales in Acer Corporation over the next four months are given below:
September October
$120,000 $140,000 $180,000 $160,000
November December
Budgeted sales
Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a
month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month
following sale. Given these data, cash collections for December should be:
Multiple Choice
$161,400
$141,800
$118.700

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