Budgeted sales in Allen Company over the next four months are given below: Budgeted Sales September $100,000 October $160,000 November December $180,000 $120,000 Twenty-five percent of the company's sales are for cash, and 75% are on account. Collections for sales on account follow a stable pattern a of a month's sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second m sale. The remainder is uncollectible. Given these data, what should be cash collections for December?

Budgeted sales in Allen Company over the next four months are given below: Budgeted Sales September $100,000 October $160,000 November December $180,000 $120,000 Twenty-five percent of the company's sales are for cash, and 75% are on account. Collections for sales on account follow a stable pattern a of a month's sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second m sale. The remainder is uncollectible. Given these data, what should be cash collections for December?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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