For Dubinsky Company, experience has shown that payment for the credit sales s r

Question

For Dubinsky Company, experience has shown that payment for the credit sales s received as fo ows: 62% in the month of ale 30% n the firs month after sale, 5% in the second month after sale, and 3% uncollectible. Dubinsky Company has budgeted the following credit sales during the last four months of the year: September, $19,000; October, $20,000; November $25,000; December, $31,000. How much cash can Dubinsky Company expect to collect in November as a result of credit sales? O A. $22,450 B. $21,500 OC. $25,000 O D. $6,950

Explanation / Answer

Collection from credit sales's (November) = $19,000 x 5% + $20,000 x 30% + $25,000 x 62%
= $22,450

Option A. $22,450 is correct answer.

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