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The following forecasted sales pertain to Spyware Corporation: Month September October November December Sales $40,000 50,000 30,000 20,000 Collection pattern: 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September?

The following forecasted sales pertain to Spyware Corporation: Month September October November December Sales $40,000 50,000 30,000 20,000 Collection pattern: 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September?

FINANCIAL ACCOUNTING
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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The following forecasted sales pertain to Spyware Corporation: Month September October November December Collection pattern: Sales $40,000 50,000 30,000 20,000 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September?
Transcribed Image Text:The following forecasted sales pertain to Spyware Corporation: Month September October November December Collection pattern: Sales $40,000 50,000 30,000 20,000 65% in month of sale 35% in month following sale Accounts receivable as of August 31 Finished goods inventory as of August 31 $7,000 1,500 units Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25% of the next month's sales. What amount is expected to be collected in September?
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