Answer: $67,250
Explanation:
Sales budget : July $100,000, August $75,000, September $100,000, October $70,000, November $110,000, December $94,000
What are the expected cash collections of sales in October
From the question, cash collection of sales has been as follows: 60% of sales collected in month of sales 20% of sales collected in month following sale 7% of sales collected in second month following sale 2% of sales uncollectible
Sales: 75,000 100,000 70,000
August. 45,000.
September 15,000 60000
October 5,250. 20,000 42,000
Total collected in October is 5250+20000+42,000= 67,250
