XYZ Company produces and sells one product. The budgeted selling price per unit is $30. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2 100 units, 3,400 units. 2700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales and the remaining 20% in the second month foilowing sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $70,500 Oc $94,000 O d. 596.300 O e $82.250

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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XYZ Company produces and sells one product. The budgeted selling price per unit is $30. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2, 100 units, 3,400 units. 2,700
units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month folowing
sale. The expected total cash collections in September is closest to:
Select one:
O a. None of the given answers
O b. $70,500
O c $94,000
O d. $96,300
O e. $82.250
Transcribed Image Text:XYZ Company produces and sells one product. The budgeted selling price per unit is $30. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2, 100 units, 3,400 units. 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month folowing sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $70,500 O c $94,000 O d. $96,300 O e. $82.250
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