Answer:
Total cash receipts in October = $137,300
Total cash receipts in November = $120,825
Total cash receipts in December = $164,925
Explanation:
As per the data given in the question,
Total cash receipts in October = Cash sales in October + September sales collection in October + October sales collection in October
= $108,000 × 30% + $86,000 + $108,000 ×70% × 25%
= $137,300
Total cash receipt in November = Cash sales in November + October sales collection in November + November sales collection in November
= $135,000 × 30% + $108,000 × 70% × 75% + $135,000 × 70% × 25%
= $120,825
Total cash receipt in December = Cash sales in December + November sales collected in December + December sales collected in December
= $198,000×30% + $135,000 × 70% × 75% + $198,000 × 70% × 25%
= $164,925
