Q21) Justin Company\'s budget includes the following credit sales for the curren
ID: 2485872 • Letter: Q
Question
Q21) Justin Company's budget includes the following credit sales for the current year: September, $36,000; October, $47,000; November, $41,000; December, $43,000. Experience has shown that payment for the credit sales is received as follows: 10% in the month of sale, 65% in the first month after sale, 23% in the second month after sale, and 2% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales?
$40,330.
$45,730.
$42,930.
$31,530.
$41,000.
Q21) Justin Company's budget includes the following credit sales for the current year: September, $36,000; October, $47,000; November, $41,000; December, $43,000. Experience has shown that payment for the credit sales is received as follows: 10% in the month of sale, 65% in the first month after sale, 23% in the second month after sale, and 2% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales?
Explanation / Answer
September october November December Credit Sales 36000 47000 41000 43000 Same Month 10% 3600 4700 4100 4300 First Month 65% 23400 30550 26650 Second Month 23% 8280 10810 Total Collections 42930 The correct option is C. $ 42930
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