Cash collections for October are

ACCOUNTING

Multiple Choice

Fiscal Company has the following sales budget for the last six months of 20x3:


July $100,000 October $ 90,000

August 80,000 November 100,000

September 110,000 December 94,000


Historically, the cash collection of sales has been as follows:

65% of sales collected in the month of sale,

25% of sales collected in the month following the sale,

8% of sales collected in the second month following the sale, and

2% of sales are uncollectible.


Cash collections for October are

a. $58,500

b. $92,400

c. $99,500

d. $88,200

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