Wright Corporation began its operations on September 1 of the current year. Budg

Question

Wright Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $243,339, $313,087, and $415,174, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month.

What are the cash collections in September from accounts receivable?

Explanation / Answer

Hi,

Please find the answer as follows;

Cash Collections from A/R = 243339*.80*.75 = 146003.40

Answer is 146003.40.

Answer

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