Answer: A) $265,000
Explanation: budgeted sales:
July $200,000 -
Cash sales = 200,000 x 40% = 80,000
Credit sales = 200,000 x 60%= 120,000 . 60,000 collected in July, 60,000 collected in August.
August $300,000 -
Cash sales = 300,000 x 40% = 120,000
Credit sales = 300,000 x 60%= 180,000 . 90,000 collected in August, 90,000 collected in September
Sept $250,000-
Cash sales = 250,000 x 40% = 100,000
Credit sales = 250,000 x 60%= 150,000 . 75,000 collected in September 75,000 collected in October
Total collected in the month of September is $100,000+$90,000+$75,000= $265,000
