Answer:
$ 115,400
Step-by-step explanation:
Complete question is:
Budgeted sales in Allen Company over the next four months are given below: September October November December $160,000 $180,000 $120,000 $100,000
Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:
Cash collection in December for the month of October= 0.2 ×0.7 ×180000= 25200
Cash collected in Decmber for the month of November= 0.7×0.3×120000=252000
Cash collected in December for the month of December= 0.5×0.7×100000 + 0.3 × 100000= 65,000
Total cash collected in the month of December= 65,000+25,200 + 25,200= $ 115,400
