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Justin Company's budget includes the following credit sales for the current year: September, $38,000; October, $49,000;...

Justin Company's budget includes the following credit sales for the current year: September, $38,000; October, $49,000; November, $43,000; December, $45,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales?

Multiple Choice

  • $46,710.

  • $43,910.

  • $32,510.

  • $43,000.

  • $41,310.

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Answer #1
Collection from November sales (43,000*20%) 8600
Collection from October sales (49,000*55%) 26,950
Collection from September sales (38,000*22%) 8360
Total 43,910

Option B

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