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 $232,405, $310,928, and $409,400, 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 October? Select the correct answer. $220,601 $282,786 $232,405 $267,082

Explanation / Answer

cash collections in October=62185.6+(248742.4*0.7)+(185924*0.25)

=$282786(Approx)

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