Freemore Company has the following sales budget for the last six months of 2018:

Question

Freemore Company has the following sales budget for the last six months of 2018: July $ 202 comma 000$202,000 October $ 181 comma 000$181,000 August 170 comma 000170,000 November 210 comma 000210,000 September 200 comma 000200,000 December 186 comma 000186,000 Sales are immediately due, however the cash collection of sales, historically, has been as follows: bullet• 6565% of sales collected in the month of sale, bullet• 2525% of sales collected in the month following the sale, bullet• 88% of sales collected in the second month following the sale, and bullet• 22% of sales are uncollectible. Cash collections for September are ________.

Explanation / Answer

September sales collection ($200,000*65%) $ 130,000 August sales collection ($170,000*25%) $    42,500 July sales collection ($202,000*8%) $    16,160 Total September cash collection $ 188,660

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