Answer:
The Cash Collections in the month of November are c. $386,150.
Explanation:
Months September October November
Sales $249,000 $304,000 $410,000
Cash Collected (25%) 62,250 76,000 102,500
⇒ Sales on Account $186,750 $228,000 $307,500
Collections of Rec.
Last Month (30%) 68,400
Current Month (70%) 215,250
Total Collections $386,150
Workings for November:
Last Month Collection = 228,000 * .3 = 68,400
Current Month Collection = 307,500 * .7 = 215,250
Total Collections = 68,300 + 215,250 + 102,500 = $386,150.
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