McEwen Company has budgeted the following credit sales during the last four mont
ID: 2510234 • Letter: M
Question
McEwen Company has budgeted the following credit sales during the last four months of the? year: September,
$19,000?; ?October,$20,000?;November$23,000?;?December,$30,000.Experience has shown that payment for the credit sales is received as? follows:
30?% in the month of? sale, 55?% in the first month after? sale, 10?% in the second month after? sale, and 55?%
uncollectible. How much cash can McEwen Company expect to collect in November as a result of credit? sales?
A.
$ 12 comma 900$12,900
B.
$ 19 comma 800$19,800
C.
$ 17 comma 900$17,900
D.
$ 21 comma 300
Explanation / Answer
Cash expected to collect in November =(19000*10%)+(20000*55%)+(23000*30%)= $19800 Option B is correct