Answer:
$31,100
Explanation:
Calculation to determine How much cash can Justin expect to collect in November as a result of current and past credit sales
First step is to calculate November sales
November sales =(15% × $30,000)
November sales=$4,500
Second step is to calculate October sales
October sales= (60% × $36,000)
October sales=$21,600
Third step is to calculate September sales
September sales=(20% × $25,000)
September sales=$5,000
Now let calculate the Total cash receipts using this formula
Total cash receipts=September sales+October sales+November sales
Let plug in the formula
Total cash receipts=$4,500+$21,600+$5,000
Total cash receipts=$31,100
Therefore the amount of cash that Justin can expect to collect in November as a result of current and past credit sales is $31,100
